L&T to secureNxT Digital Business to Mindtree for Rs. 198 crore

On Thursday, Mindtree announced that it would buy Larsen and Toubro's (L&T) NxT Digital Business for Rs 198 crore, which will allow the mid-sized IT company to capitalise on the cloud based IoT and Industry 4.0 prospects.

According to NSE filings, the acquisition will be a full cash deal valued at Rs 198 crore that is scheduled to close before or on July 31st. The company reportedly earned Rs 37.59 crore in FY21 and Rs 49.73 crore in FY20.

NxT Digital Business combines the company's broad industry market experience with new technologies such as industrial IoT, AI, computer learning, augmented and virtual reality, geospatial, and cybersecurity.

DebashisChatterjee, Chief Executive Officer & Managing Director of Mindtree said, “The acquisition will complement our significant strengths in reimagining consumer experience, positioning us as one of the leading partners for leveraging data and analytics to drive insights and deliver transformational services to our clients.”

Inside L&T, the NxT Digital Business was established as a start-up with deep digital capabilities. It has aided in the widespread use of IoT technologies and the digitalization of many facets of L&T's operations.

NxT Digital Business is responsible for digitizing the company’s operations in factories which were data-based, it also linked various assets.

According to the firm, the combined products of Mindtree and NxT Digital Business would add scale and market agility to satisfy consumers' growing end-to-end digitization requirements.

The Chief Executive of Mindtree explained, “Industrial and manufacturing companies are starting to adopt digital technologies across the value chain but need a partner with expertise to strategically connect the dots and generate business value from their data.”

L&T is Mindtree's holding company, owning 61.03 percent of the Bengaluru-based firm. L&T notified in a separate filing to the BSE that it has sold its digital transformation sector undertaking, L&T-NxT to Mindtree, following the signing of a Business Transfer Agreement on Thursday.