The merger of L&T Infotech and Mindtree has been approved, and the merged entity will start operating on November 14. It will rank fifth in terms of market capitalization and sixth in terms of revenue among all IT providers in the nation. This merger is among the biggest in India’s information technology (IT) industry.
The combined company, LTIMindtree, will gain from scale, enabling it to chase larger outsourcing contracts as clients seek to consolidate vendors in a more difficult macro environment.
The merger has been authorised by the National Company Law Tribunal’s (NCLT) Mumbai and Bengaluru benches, according to L&T Group Chairman AM Naik, in separate rulings.
According to Naik, the combined company and L&T Technology Services (LTTS) would bring in $5.6 billion this year. He projects that LTIMindtree will produce $5 billion in sales in 2019.
Beginning on November 24, Mindtree will be delisted from stock exchanges, and LTI will change its name to LTIMindtree, according to Vinit Teredesai, the combined company’s chief financial officer.