L&T Technology Services, a pure-play engineering services company, will acquire the Smart World & Communication (SWC) business of Larsen & Toubro (L&T) for INR 800 crores.

The transaction is part of L&T Technology Services’ 6 Big Bets strategy in 5G, sustainability and digital products and artificial intelligence.

The acquisition is expected to help L&T Technology Services enhance its global footprint across next-gen communications, sustainable spaces and cybersecurity.

Founded in 2016, Smart World & Communication offers smart solutions in the fields of end-to-end communications, city surveillance and intelligent traffic management system for the government as well as businesses.

Smart World & Communication with an employee base of more than 700 engineers, has an annual revenue of over INR 1,000 crores.

S. N. Subrahmanyan — Larsen & Toubro CEO and Managing Director said: “Smart World & Communication has created a niche for itself in the communications and smart spaces domain across developing markets.

“By combining with a global engineering services player like LTTS [L&T Technology Services], its offerings across next-gen networks, smart spaces, and cybersecurity will help unlock new synergies across the technology spectrum.”

The combined entity of L&T Technology Services and Smart World & Communication will offer security operating centers, full lifecycle threat management, OT cybersecurity and product security credentials, apart from catering to cybersecurity market.

Amit Chadha — L&T Technology Services CEO and Managing Director said: “The acquisition of SWC [Smart World & Communication] is a progression of LTTS’ 6 Big Bets strategy with a direct bearing on 5G, Digital Products & AI, and Sustainability.

“SWC’s capabilities will enhance LTTS’ differentiation in the exciting field of next-gen communications with cutting edge solutions around 5G networks, sustainable spaces, along with a full stack of cybersecurity solutions to our global clientele.”

The transaction is anticipated to close in three months, subject to regulatory approvals and certain customary closing conditions.

  Amit Chadha, artificial intelligence, cybersecurity, India, L&T Technology Services, Larsen & Toubro, S. N. Subrahmanyan