L&T Technology To Acquire US-Based Intelliswift For $110 Million
The acquisition boosts L&T Technology's presence in Silicon Valley, "and advances us towards our $2 billion medium-term goal", said CEO Amit Chadha.
L&T Technology Services Ltd. is set to acquire Intelliswift Software Inc. to "enhance and expand its capabilities" in software product development, platform engineering, digital integration, data and artificial intelligence, a press release stated on Monday.
The Silicon Valley-based Intelliswift will be acquired for $110 million, which includes upfront and deferred consideration and retention bonus, according to the release.
Following the transaction, Intelliswift and its subsidiaries will be wholly-owned by L&T Technology.
"The acquisition of Intelliswift strengthens our digital and software product engineering capabilities, expands strategic client partnerships with major technology spenders, boosts our presence in Silicon Valley, and advances us towards our $2 billion medium-term goal,” Amit Chadha, chief executive officer and managing director and L&T Technology said.
Intelliswift services four of the top five hyperscalers and has worked with close to 25 Fortune 500 companies which includes five of the top 10 engineering, research and development spenders in software and technology, the release said.
Through this acquisition, L&T Technology plans to make inroads into adjacent markets of retail and fintech, it added.
The transaction will mark a "strategic step forward", said Intelliswift Founder and Executive Chairman Pat Patel.
"Together, we aim to become the leading technology partner for major hyperscalers and companies worldwide that depend on us for business critical products and platforms, significantly enhancing our digital offerings," he said.
The acquisition of Intelliswift was announced by L&T Technology after the market hours. The company's shares had closed 0.17% higher at Rs 5,111.05 apiece on the NSE, compared to a marginal increase of 0.01% in the benchmark Sensex.
Out of the 30 analysts tracking the company, five have a 'buy' rating on the stock, six suggest a 'hold' and 19 recommend a 'sell', according to Bloomberg data. The average of 12-month analysts' consensus price targets implies a potential downside of 0.4%
