Mindtree & L&T Infotech Merger: Merger has been announced between the country’s two leading IT companies L&T Infotech and Mindtree. Both the software companies are part of the engineering giant L&T (Larsen & Toubro) Group. After the merger, the name of the new company will be LTIMindtree. L&T (L&T) has decided to merge both the IT companies, which will create a huge IT company of $ 22 billion. After this merger, it will be possible to compete with global IT companies and get large orders.
LTIMindtree will be the 5th largest IT company
After the merger, LTIMindtree will become the fifth largest IT company in the country, leaving behind Tech Mahindra. The merger of both the software companies may take 9 to 12 months. A committee will be formed to complete the transaction. After this merger, the shareholders of Mindtree will get 73 L&T Infotech shares in lieu of 100 shares. After the completion of the merger, the new shares of LTIMindtree will trade on the stock exchange. Larsen & Toubro will hold 68.73 % stake in LTIMindtree. The two companies together will have a total of 81,719 employees.
L&T bought Mindtree in 2019
After the merger, the income of both the companies will be $ 3.5 billion i.e. close to Rs 27,000 crore. While the market cap of L&T Infotech is Rs 1.03 lakh crore, the market cap of Mindtree is close to Rs 65,000 crore. L&T bought Mindtree in 2019, in which it holds 61 per cent stake.
The era of merger has started in the country
However, the era of merger merger has started in the country. Earlier, two big companies in the multiplex sector, INOX and PVR, are merging with each other. So the home loan finance company HDFC is going to merge with HDFC Bank. And now L&T is going to merge its two IT companies.
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