L&T Technology Services to buy L&T’s Smart World & Communication unit
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.
L&T Technology Services to acquire Larsen & Toubro’s Smart World & Communication unit. Photo courtesy of Batmaniacs/Wikipedia.org.
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.