Mid-cap IT services player Mindtree said it has signed an agreement to acquire the NxT Digital Business, the cloud based IoT and AI platform for Industry 4.0 of L&T Group for a consideration of Rs 198 crore.
The NxT Digital Business was founded as a startup in FY19 with broad digital capabilities within L&T. The revenue of NxT Digital Business was Rs 37.59 crore for FY21, a drop of almost 25 per cent when compared to revenues of FY20 at Rs 49.73 crore, according to regulatory filings.
According to the company’s statement, NxT has played an instrumental role in extensive applications of IoT technology and digitalization of many aspects of L&T’s operations where numerous assets were connected and factories were digitalized to make the company’s operations data-driven for objective decision making.
“Industrial and manufacturing companies are starting to adopt digital technologies across the value chain, but need a partner with expertise to strategically connect the dots and generate business value from their data,” said Debashis Chatterjee, Chief Executive Officer & Managing Director, Mindtree.
“The acquisition will complement our significant strengths in reimagining consumer experience, positioning us as one of the leading partners for leveraging data and analytics to drive insights and deliver transformational services to our clients.”
Mindtree and NxT Digital Business’ combined offerings will bring scale and market agility to meet the growing end-to-end digital transformation demands of customers, said the company.
“There is a huge opportunity ahead as global manufacturers and industrial companies are increasingly adopting Industry 4.0 focused smart solutions, systems, and processes, but are struggling to leverage data and analytics to drive efficiency and competitive advantage,” said S. N. Subrahmanyan, Chief Executive Officer & Managing Director, Larsen & Toubro Limited.
He further said: “NxT Digital Business experience, talent, expertise and credentials, coupled with Mindtree’s global scale, technology leadership, and deep understanding of domain and delivery, are a powerful combination of focus and capabilities to meet clients’ requirements.”
The acquisition is subject to customary closing conditions.
Source: Mint