Mindtree and L&T Infotech to merge to achieve $22 billion market value : Report

The boards of Mindtree Ltd. and L&T Infotech Ltd., two software units controlled by the Mumbai-based engineering firm, could consider share swap ratios for the merger as early as next week.

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The boards of Mindtree Ltd (Check the Q4 financial result here) and L&T Infotech Ltd., two software units controlled by the Mumbai-based engineering firm, could consider share swap ratios for the merger as early as next week, as published in live mint.

The proposed merger comes as software companies are seeing surging demand from businesses embracing the digitization that accelerated during Covid-19. Large IT outsourcing firms are also expanding into areas such as cybersecurity, automation and machine-learning support, moving beyond lower-margin traditional back-room services.

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L&T acquired control of Mindtree in 2019. The conglomerate holds about a 61% stake in the company, which has a market value of $8.3 billion, and has around 74% of L&T Infotech, which has a market capitalization of $13.6 billion, data compiled by Bloomberg show.

The two companies have minimal overlap in businesses or clients, and a tie-up would give them better pricing power and lower costs, one of the people said.

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Deliberations around the merger are ongoing and the plan could be delayed or fall apart, the people said. Representatives for Larsen, Mindtree and L&T Infotech couldn’t immediately comment on queries from Bloomberg News. Mindtree and L&T Infotech are scheduled to report earnings Monday and Tuesday respectively.

The stock of L&T Infotech ltd last hit in BSE,

  • Intraday High of ₹ 6060.00
  • Intraday low of ₹ 5804.00