It’s Raining Mergers: MindTree and L&T Infotech on a Deal Chase

Photo by krakenimages on Unsplash

Did someone say ‘Merger’ – again?!

Hear, hear! 

Coming up next on the Merger Hall of Fame are Mindtree and Larsen & Toubro Infotech (LTI), group companies of Larsen & Toubro (L&T). MindTree, the Bengaluru-based tech services and consulting firm, was acquired by L&T in 2019 where it claimed a 60% stake.

The merger, if it goes through, will create an empire with combined revenue of $3.5 billion. This will make the entity rank 6th in the pecking order by topline, behind biggies like TCS, Infosys, HCL Tech, Wipro and Tech Mahindra. The combined market cap is estimated to be over $22 billion!

The Deal Breakers and Makers

While the deal is still speculative, L&T is weighing the merger between two of its publicly traded software firms to scale up and compete with global digital giants. The plan could be delayed or even fall apart. 

Surging demand from businesses transitioning towards digitization is likely to be the reason behind the proposed merger. 

Let’s Hear it for the Team!

Both the mid-tier IT services companies of the L&T Group have a lot of synergies and complement each other as they have minimal overlap in businesses and clients. The two have been found addressing client issues together in the past and even won deals as a team. Joining hands would allow them to cut costs and gain more price power. 

Seems like they’re about to hit the nail on the head!

Too long? Here’s a one-liner: L&T infotech and Mindtree – group companies of Larsen & Toubro are speculating a merger with a market cap worth $22 bn; synergy sharing will be a plus as the two might consider share swap ratios

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