Shares of L&T Technology Services surged up to 4.25 per cent to hit an intraday high of Rs 5,324.65 per share on the BSE after the company on Monday announced an acquisition of Silicon Valley-based company Intelliswift for $110 million.
LTTS stated that its wholly owned subsidiary L&T Technology Services LLC, will acquire 100 per cent of the equity share capital of the US based Intelliswift Software Inc and Indian based Intelliswift Software (India). The proposed acquisition is expected to be completed on or before 28 February 2025, LTTS said.
“L&T Technology Services LLC, have signed definitive agreements on 11 November, 2024 with the relevant parties for acquisition of 100 per cent shares of: Intelliswift Software (India); and (ii) Intelliswift Software Inc. by L&T Technology Services LLC, for an aggregate consideration of up to $110 million,” the company said in a statement on Monday.
Incorporated in 2001, the Intelliswift Software Inc is headquartered in the US
with a presence in India, Hungary, Canada, Singapore and Costa Rica, while Intelliswift Software (India) was incorporated in 2002 in Gujarat. With both companies operating in the software product development, platform engineering and AI industry.
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, the company said.
Intelliswift provides offerings across software product development, platform engineering and AI to global companies. The consolidated turnover of the company was approximately $96 million for the calendar year ended 31 December 2023.
L&T Technology Services share price history
The company’s stock has underperformed the market year to date as it has risen 2.2 per cent, while gaining 23.8 per cent in the last one year. In comparison BSE Sensex has risen 9.9 per cent year to date and 21.7 per cent in a year.
The company has a total market capitalisation of Rs 55,860.47 crore. L&T Technology Services shares are trading at a price to earnings multiple of 43.04 times and at an earning per share of Rs 188.66.
At 9:50 AM; the shares of the company were trading 4.15 per cent higher at Rs 5,319.40 a piece. By comparison, the BSE Sensex was down 0.07 per cent at 79,442.49 level.
The article originally appeared on Business Standard.