Mindtree announced that it has signed an agreement to acquire the NxT Digital Business, the cloud based IoT and AI platform for Industry 4.0 of L&T Group.
The transaction comprises of acquisition of NxT Digital Business of L&T. Total consideration of Rs 198 crore including earnouts, subject to adjustments as per the terms of Business Transfer Agreement.
NxT Digital Business was formally established in FY2018-19. It can provide solutions across industries such as Engineering & Construction, Manufacturing, Energy & Utilities and Transportation & Logistics. The NxT Digital Business revenue during FY 2020-21 was Rs 37.59 crore.
Nxt Digital Business belongs to the information technology industry. The acquisition would enable the company to capture opportunities in the IoT and Industry 4.0 market by leveraging NxT Digital Business capabilities to cross sell and create holistic solutions for new prospects as well as for existing clients.
The acquisition will be completed, subject to completion of customary conditions precedent, on or before July 31, 2021.
The NxT Digital Business, was founded as a startup with broad digital capabilities within L&T. It has played an instrumental role in extensive applications of IoT technology and digitalization of many aspects of L&T's operations where numerous assets were connected and factories were digitalized to make the company's operations data driven for objective decision making.
NxT Digital Business leverages the Group's deep industry domain expertise with emerging technologies like industrial IoT, artificial intelligence, machine learning and augmented and virtual reality, geospatial and cybersecurity applications to deliver disruptive business outcomes for its global customers.
Mindtree and NxT Digital Business' combined offerings will bring scale and market agility to meet the growing end-to-end digital transformation demands of customers.
The announcement was made after market hours yesterday, 20 May 2021.
Mindtree is a leading digital transformation and technology services company. The stock rose 0.42% to settle at Rs 2,094.10 yesterday.
L&T is an Indian multinational engaged in EPC projects, hi-tech manufacturing and services. The stock rose 0.44% to settle at Rs 1,409.65 yesterday.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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