- 12 Nov 2024
- ICICI Securities
LTTS: TO ACQUIRE INTELLISWIFT SOFTWARE PVT LIMITED (INDIAN TARGET) AND INTELLISWIFT SOFTWARE (US TARGET)
News: LTTS will acquire Intelliswift Software Pvt Limited (Indian Target) and Intelliswift Software (US Target). The proposed acquisition is expected to be completed on or before 28th February 2025. Upon the acquisition LTTS. will acquire 100% of the equity share capital of the Indian Target, thereby making the Indian Target a wholly owned subsidiary of the Company. Further, L&T Technology Services LLC, a wholly owned subsidiary of the Company, will acquire 100% of the equity share capital of the US Target, thereby making the US Target a step-down subsidiary of the company.
Views: LTTS will acquire the target companies for a cash consideration US$ 110 mn (₹924 crore) The consolidated turnover of the target entities is US$ 96 mn (₹806.4 cr) for FY23. It implies valuation of 1.14x on its CY23 Price/Sales. The acquisition will enhance LTTS’s AI and software capabilities in the Digital Engineering suite for global clients, through enhanced software product development, data and platform engineering capabilities.
Impact: Neutral