L&T gains as technology arm to acquire Dell's engineering services business

L&T rose 1.71% at Rs 1438.90 at 10:28 IST on BSE after the company said its wholly owned subsidiary announced its intent to acquire Dell's engineering services business.

The announcement was made during market hours today, 8 October 2014.

Meanwhile, the S&P BSE Sensex was down 13.82 points or 0.05% at 26,258.15.

On BSE, so far 66,000 shares were traded in the counter as against average daily volume of 2.42 lakh shares in the past two weeks.

The stock hit a high of Rs 1,450.20 and a low of Rs 1,400 so far during the day.

L&T's wholly owned subsidiary L&T Technology Services announced the intent to acquire the assets of US based Dell Product and Process Innovation Services (formerly eServ), the engineering services division of Dell (Dell Engineering Services). The Competition Commission of India (CCI) has approved the proposed transaction, L&T said. The company added that it is awaiting US regulatory approvals which are expected shortly. The closure of transaction is expected around this quarter, subject to certain regulatory approvals, it added. The financial details of the deal were not disclosed.

L&T said that the proposed acquisition will significantly drive forward L&T Technology Services' position as a premier engineering services provider by adding local delivering centers in North America.

L&T Technology Services focus in the engineering services space, partnering with many of the Fortune 500 companies globally.

L&T's consolidated net profit jumped 110.8% to Rs 966.89 crore on 10.1% growth in net sales to Rs 18974.75 crore in Q1 June 2014 over Q1 June 2013.

L&T is a major Indian multinational in technology, engineering, construction, manufacturing and financial services, with global operations. Its products and systems are marketed in over 30 countries worldwide.

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