LTTS shares jump 4.5% following $110 million AI-focused acquisition

Shares of L&T Technology Services (LTTS) jumped 4.5% to a high of Rs 5,338.65 on the BSE after the company announced that it has acquired California-based Intelliswift Software along with its Indian arm for $110 million on Monday.

The acquisition is meant to enhance LTTS’ AI and software capabilities in the digital engineering suite for global clients, through enhanced software product development, data and platform engineering capabilities. The addition of Intelliswift’s AI-led automation framework and digital enterprise will boost the process. To top it all the company will also offer integration services through agile engineering and next-generation technologies.

“We wish to inform you that the Company and its wholly -owned subsidiary, L&T Technology Services LLC, have signed transaction documents/ definitive agreements today (i.e., 11 November, 2024) with the relevant parties for acquisition of 100% shares of: (i) Intelliswift Software (India) Private Limited by the Company; and (ii) Intelliswift Software Inc. by L&T Technology Services LLC, for an aggregate consideration of up to USD 110 million,” said the company in an exchange filing.

The proposed acquisition is expected to be completed on or before 28 February 2025, stated the company filing.

LTTS will acquire 100% equity interest in Intelliswift Software Inc. (the US target company) as well as Intelliswift Software (India) (the Indian target company).

Intelliswift services 4 of the top 5 hyperscalers and caters to over 25 Fortune 500 companies including 5 of the top 10 ER&D spenders in software and technology. With this acquisition, LTTS will also be able to address adjacent markets of retail and fintech, along with the private equity channel.Also read: Sagility India shares list at 3.5% premium over IPO price

“Software and AI are becoming essential for our clients seeking to bring new products and differentiated solutions for the consumer. The acquisition of Intelliswift strengthens our digital and software product engineering capabilities, expands strategic client partnerships with major technology spenders, boosts our presence in Silicon Valley, and advances us towards our USD 2 Billion medium-term goal. We warmly welcome the Intelliswift team to our LTTS family, to join us in our journey of ‘Purposeful. Agile. Innovation’ with inclusive growth,” said Amit Chadha, CEO and Managing Director, L&T Technology Services.

The shares of LTTS have increased by 23.4% in the last one year and have gained nearly 3% in the current year so far.

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