L&T Technology Services Limited share price gained more than 5% in intraday trades on Tuesday. L&T Technology announced having signed a definitive agreement to acquire Silicon Valley-based Intelliswift, to deepen its offerings across software product development, platform engineering, Digital Integration, Data and AI.
L&T Technology Services share price opened at ₹5181.0 on the BSE on Tuesday, 1-2% higher than the previous close of ₹5107.35. L&T Technology Services share price thereafter gained more than 5% to intraday highs of ₹5370.00.
L&T Technology Services said that the acquisition will expands footprint in Hyperscalers and big tech spenders. Intelliswift services 4 of the Top 5 Hyperscalers and caters to over 25 Fortune 500 companies including 5 of the top 10 ER&D spenders in Software and Technology.
With this acquisition, L&T Technology Services said that it will also be able to address adjacent markets of Retail and Fintech, along with the Private Equity channel.
The acquisition will enhance LTTS’ AI and software capabilities in the Digital Engineering suite for global clients, through: (1) Industry leading software product development, data & platform engineering capabilities (2) Intelliswift’s AI-led automation framework which provides end-to-end automation solutions across platforms and processes (3) Digital enterprise & Integration services through agile engineering and next generation technologies
Transaction details- Transaction consideration is for a total of $110 million which includes upfront, deferred consideration and retention bonus. L&T Technologies will be acquiring 100% of the interests in Intelliswift, Inc and its subsidiaries. and the transaction is expected to be achieved by the start of Q4 FY25
Intelliswift’s Revenue stood at $96 Million for the year ended 31 December 2023)
Deal Valuations
L&T technology has acquired Intelliswift at 1.1 toms Enterprise value by sales (CY23 revenues of $96m). This acquisition will have ~9% inorganic contribution to FY25’s revenue.
