Mindtree to acquire NxT Digital Business from L&T for Rs198cr
Mindtree, an Indian technology consultancy company, has signed a deal worth INR 198 crores with Larsen & Toubro (L&T) to acquire the latter’s NxT Digital Business, a cloud-based IoT and AI platform for Industry 4.0.
Founded as a startup, NxT Digital Business, is said to have played a key role in extensive applications of IoT technology and digitalization of several aspects of L&T’s operations where various assets were connected and factories were digitalized.
NxT Digital Business is claimed to make use of L&T’s deep industry domain expertise with emerging technologies such as industrial IoT, machine learning, artificial intelligence, and augmented and virtual reality, cybersecurity and geospatial applications for delivering disruptive business outcomes for its customers across the world.
S. N. Subrahmanyan – CEO and Managing Director of Larsen & Toubro said: “There is a huge opportunity ahead as global manufacturers and industrial companies are increasingly adopting Industry 4.0 focused smart solutions, systems, and processes, but are struggling to leverage data and analytics to drive efficiency and competitive advantage.
“NxT Digital Business experience, talent, expertise and credentials, coupled with Mindtree’s global scale, technology leadership, and deep understanding of domain and delivery, are a powerful combination of focus and capabilities to meet clients’ requirements.”
L&T is also a promoter of Mindtree with a stake of 61.03%.
Mindtree said that the transaction will enable it to capture opportunities in the IoT and Industry 4.0 market by making use of the capabilities of NxT Digital Business to cross sell and develop holistic solutions for new prospects and also for existing clients.
Their combined offerings are expected to provide scale and market agility to address the increasing end-to-end digital transformation demands of customers. This will help expedite the journey to Industry 4.0, said Mindtree.
Debashis Chatterjee – CEO and Managing Director of Mindtree said: “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.
“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.”
The deal, which is subject to preceding customary conditions, is expected to close by 31 July 2021.