In a landmark consolidation within the Indian technology services sector. ITC Infotech announced a proposed strategic combination with Happiest Minds Technologies Limited. The board of ITC Infotech has sanctioned the proposal for the acquisition of a 22.1% equity stake in Happiest Minds. Through a Share Purchase Agreement. Right Issue will fund the initial stake aquiaition.
Following this share acquisition, ITC Infotech will enter into a Scheme of Amalgamation for bringing the two companies together. The Board of Directors of parent company ITC Limited has also approved the deal. Following the amalgamation, the combined entity will list its shares on leading Indian stock exchanges.
This merger combines the holistic cloud, data analytics, SAP, and full-stack managed services. Of ITC Infotech with the digital product engineering and cybersecurity of Happiest Minds. Therefore, through this deal, the company has created an AI-first technology enterprise aiming at $1 billion in revenue by FY28.
Sanjiv Puri, Chairman of ITC Limited and ITC Infotech, said, “Today marks an important milestone in the journey towards Happiest Minds becoming an integral part of ITC Infotech, subject to receipt of regulatory approvals. The coming together of our complementary strengths, deep domain expertise and future-ready capabilities will further enhance our ability to deliver cutting-edge solutions across geographies. I am particularly encouraged by the shared values, people and customer-centricity that define our organisations. We look forward to the invaluable experience, expertise and dedication of the employees of Happiest Minds as we embark on this exciting new chapter.”
Synergy and Market Acceleration
The new enterprise will have a team of more than 19,000 technology experts in total. This new amalgamated enterprise will greatly enhance the geographical footprint of ITC Infotech in North America and Europe, along with increasing their penetration in BFSI sectors. Additionally, the business portfolio will diversify into sectors such as Healthcare, Hi-Tech, and EdTech.
Ashok Soota, Chairman & Chief Mentor, Happiest Minds Technologies, said “I am delighted that after the completion of legal formalities, Happiest Minds will become an important part of a larger organization through its amalgamation with ITC Infotech. The two organizations are aligned on our values and shared vision for the future. There is very significant complementarity in our business portfolios which will ensure synergy. We believe that ITC Infotech is the best partner for Happiest Minds to fulfil its destiny and we are pleased that our team will have a welcoming new home.”
Manas Chakraborty, MD & CEO, ITC Infotech, highlighted that “This combination is fundamentally about elevating the value we deliver to our customers. Integrating Happiest Minds’ Digital Engineering, Data, AI, and Cybersecurity capabilities with our deep domain expertise, cloud and engineering capabilities will enable us to serve as a full stack AI-led transformation partner.”
The execution of the proposed transaction remains subject to statutory, shareholder, and regulatory approvals. Key authorities include the Competition Commission of India, the relevant stock exchanges, and the National Company Law Tribunal. Both technology platforms expect to complete the transaction within 15 months, operating independently until receiving all final approvals.
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News Source: Businesswire.com
