Key Points of the L&T business division:
- L&T Technology Services is acquiring the Smart World & Communication (SWC) business of Larsen & Toubro for an estimated 800 crore.
- The revenue of the carved-out business for FY 2021-22 was 1,098 crore and networth was 440 crore.
- The business transfer will be on a slump sale basis.
- The SWC business includes the smart and safe segment and communications segment of the SWC business, but excludes the military communications segment and certain identified customer contracts.
- The business transfer is expected to be completed by March 31, 2023.
- L&T Technology Services is a listed subsidiary of L&T, with the latter owning 73.85% of the company.
- The acquisition of SWC is in line with L&T Technology Services’ 6 Big Bets strategy, with a direct bearing on 5G, Digital Products, AI, and sustainability.
- The acquisition will enhance L&T Technology Services’ differentiation in the field of next-gen communications, with cutting edge solutions around 5G networks, sustainable spaces, and cyber security for its global clientele.
Details of the L&T business division:
Engineering services company L&T Tech Services has announced an acquisition of the Smart World & Communication (SWC) business of L&T for 800 crore.
L&T reports that the revenue for the carved-out business in the fiscal year 2021-2022 was 1,098 crore, including inter-segment revenues, and the net worth was 440 crore.
L&T Technology Services will acquire the SWC business through a slump sale transfer. The SWC business includes the smart and safe segment and communications segment, along with related software platforms, IPs, and employees. The acquisition does not include the military communications segment or certain identified customer contracts, as per L&T.
L&T has stated that the business transfer is expected to be completed by March 31, 2023, pending fulfillment of the conditions outlined in the agreement.
L&T Technology Services is a publicly listed subsidiary of L&T, with the latter holding a 73.85% stake in it.
“Smart World & Communication has established a strong reputation in the communications and smart spaces field in emerging markets. By merging with a global engineering services firm like LTTS (L&T Technology Services), its offerings in next-generation networks, smart spaces, and cybersecurity will create new opportunities across the technology spectrum. LTTS is well-suited to bring these capabilities to the global market, solidifying its strong leadership in the engineering and technology sector,” said L&T Chief Executive Officer & Managing Director S.N. Subrahmanyan.
According to Amit Chadha, CEO & Managing Director of L&T Technology Services, the acquisition of SWC aligns with the company’s 6 Big Bets strategy, specifically in the areas of 5G, digital products, artificial intelligence, and sustainability.
He stated that SWC’s expertise will allow L&T Technology Services to further differentiate themselves in the field of next-generation communications by providing cutting-edge solutions for 5G networks, sustainable spaces, as well as a comprehensive range of cybersecurity solutions to its global client base.
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