Larsen & Toubro Infotech (LTI) on 15 June 2021, signed a definitive agreement to acquire Cuelogic Technologies, a Pune-based digital engineering company with a 100% subsidiary in US, Cuelogic Technologies, Inc.
The cost of acquisition for 100% share capital of Cuelogic Technologies is $8.4 million on a cash-free, debt-free basis excluding working capital adjustments and will be paid as a combination of upfront consideration, retention bonus and performance-based earn-outs. The entire consideration will be paid in cash. The transaction is subject to customary closing conditions which are expected to get completed within 2 to 4 weeks.
This acquisition will help in enhancing LTI's digital engineering practice by combining Cuelogic Technologies' people, tools, methodologies, training methodologies and onboarding structure along with its strong leadership team to support practice development, sales and delivery.
Cuelogic Technologies is a digital engineering company which operates in the digital product engineering space. It works with customers wanting to build digital products, modernize legacy software with modern technologies leveraging cloud, AI, mobility and offer Innovation Lab as a service to fast track experimentation and capture untapped value from digital. Cuelogic reported a revenue of $5.5 million (unaudited) in FY2021 compared with $3.55 million in FY2020.
Cuelogic will be integrated with the Digital practice of LTI. This is the seventh acquisition by LTI since the company got listed in 2016.
L&T Infotech is a global technology consulting and digital solutions company. Its consolidated net profit rose 5.1% to Rs 545.70 crore on 3.7% increase in revenue to Rs 3,269.40 crore in Q4 FY21 over Q3 FY20.
Shares of LTI rose 0.27% to Rs 4,165.40 on BSE. The scrip hovered in the range of Rs 4,125.50 to Rs 4,189.35 so far.
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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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