L&T Technology Services Limited Sees Significant Share Price Growth After Acquiring Silicon Valley-Based Firm Intelliswift

Mumbai, India - L&T Technology Services Limited (LTTS), a leading engineering, design, and R&D services company, witnessed a remarkable gain of more than 5% in its share price during intraday trades on Tuesday. The company announced that it has signed a definitive agreement to acquire Silicon Valley-based Intelliswift Inc., expanding its offerings across software product development, platform engineering, digital integration, data, and AI.

LTTS shares began the day at ₹5181.0 on the BSE, higher by 1-2% compared to the previous close of ₹5107.35. However, the stock soon gained momentum, reaching an intraday high of ₹5370.00, surging more than 5% from its opening price.

The acquisition, valued at $110 million, is expected to enhance LTTS' AI and software capabilities in the digital engineering suite for global clients. Intelliswift services four of the top five hyperscalers and caters to over 25 Fortune 500 companies, including five of the top 10 ER&D spenders in software and technology.

LTTS aims to address adjacent markets such as retail and fin-tech, along with the private equity channel. The acquisition is expected to contribute around 9% to the company's FY25 revenue.

According to industry estimates, the deal valuation stands at 1.1 times enterprise value by sales (EV/SALES), which is equivalent to a price-to-sales ratio. The transaction is expected to be completed by the start of Q4 FY2025.

The news sent shockwaves of positivity in the market, with investors eagerly awaiting the company's future moves following the acquisition. However, analysts advise caution and recommended investors to consult certified experts before making any investment decisions.