Shares of Larsen & Toubro Infotech gained 2.2 per cent to Rs 4,148 apiece on the BSE in Wednesday's intra-day session after the company announced acquisition of Cuelogic Technologies Private Limited, a Pune based Digital Engineering company. At 12:28 PM, the stock was trading 1.6 per cent higher at Rs 4,222 per share as against a 0.45 per cent decline in the benchmark S&P BSE Sensex.
"We wish to inform you that pursuant to the approval of Strategic Investment Committee at its meeting held on June 15, 2021, the Company has signed a definitive agreement to acquire Cuelogic Technologies Private Limited, a Pune based Digital Engineering company with a 100 per cent subsidiary in US, Cuelogic Technologies, Inc. The acquisition is subject to customary closing conditions which are expected to get completed within 2 to 4 weeks," it said in an exchange filing. READ HERE
According to the terms of the deal, the cost of acquisition for 100 per cent share capital of Cuelogic 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.
This acquisition will help in enhancing LTI’s digital engineering practice by combining Cuelogic’s people, tools, methodologies, training methodologies and onboarding structure along with its strong leadership team to support practice development, sales, and delivery, LTI said in a statement.
Cuelogic Technologies, is a digital engineering Company whose primary focus is on building and modernizing digital products leveraging cloud native methodologies across web and mobile. It also run Innovation Lab as a service program for their clients. Cuelogic's revenue for past three financial years stood at $5.50 million (FY21), $3.55 million (FY20), and $3.21 million (FY19).
Meanwhile, on Tuesday, LTI entered into a strategic collaboration agreement with Amazon Web Services. It's dedicated cloud unit for AWS will focus on migration and modernization, SAP application workloads, data analytics, and Internet of things (IoT), complemented by LTI’s advisory, professional services, and delivery capabilities. READ HERE
LTI is a global technology consulting and digital solutions company, with operations in 31 countries, and provides digital transformation by enabling mobile, social, analytics, IoT and cloud journeys.