Larsen weighs merging Mindtree & L&T Infotech into a $22 billion firm
Updated: Aug 28, 2022
Larsen & Toubro Ltd. is considering merging its publicly owned software companies as it seeks size to contend with global digital behemoths. It is being done at a time when software companies are facing increased demand from enterprises that are implementing digitalization, which surged during Covid-19.
In 2019, Larsen took control of Mindtree. According to Bloomberg data, the conglomerate owns a 61 percent investment in the business, which possesses a trade capitalization of $8.3 billion and a 74 percent stake in L&T Infotech.
Both firms have very little business or customer overlap, so a merger would provide them with more pricing power and cheaper costs. Mindtree announced fourth-quarter net revenue of 4.73 billion rupees ($62 million) on Monday. L&T Infotech is set to release its earnings on Tuesday.