L&T Technology Services Sees Steep Gains on Acquisition of Silicon Valley-Based Intelliswift
Mumbai: L&T Technology Services Limited (LTTS) share price surged more than 5% in intraday trades on Tuesday, as the company announced its definitive agreement to acquire Silicon Valley-based Intelliswift Inc. for a total consideration of $110 million.
The acquisition, expected to be completed by the start of Q4 FY25, will deepen LTTS' offerings across software product development, platform engineering, digital integration, data, and AI. According to LTTS, the deal will expand its footprint in hyperscalers and big tech spenders, with services catering to four of the top five hyperscalers and over 25 Fortune 500 companies.
The transaction consideration is comprised of upfront, deferred consideration, and a retention bonus. As part of the acquisition, L&T Technology Services will acquire 100% of Intelliswift Inc.'s interests and subsidiaries.
"The acquisition of Intelliswift will enhance our AI and software capabilities in the digital engineering suite for global clients," said LTTS Managing Director and CEO Venkatesh Shankar Rao. "We are confident that this deal will provide a significant boost to our business, while enabling us to address adjacent markets of retail and fintech."
With the acquisition, LTTS is expected to see a 9% inorganic contribution to its revenue in FY25, valued at 1.1 times Enterprise Value by Sales (CY23 revenues of $96 million).
The stock prices of L&T Technology Services rose sharply in intraday trades, with the company's share price opening at ₹5,181 on the BSE and peaking at ₹5,370 at one point. The current closing price is higher than its previous close of ₹5,107.35.
As news of the acquisition broke, shares of L&T Technology Services saw significant gains, with some analysts hailing it as a strategic move by the company to strengthen its position in the rapidly evolving technology landscape. However, investors are advised to exercise caution and consult certified experts before making any investment decisions.
L&T Technology Services' stock was trending at ₹5,250 on the BSE at 10:00 am IST today.