ITC Infotech, Happiest Minds Technologies to merge in ₹1,330 crore deal

ITC will hold about 73.4 per cent in the merged company, which will have over 19,000 employees, serve 800 customers and target $1 billion in annual revenue by FY28

In a signal toward consolidation in the mid-cap information technology (IT) services segment, Happiest Minds Technologies will merge with ITC Limited’s tech subsidiary ITC Infotech. IT sector veteran and Happiest Minds Founder Ashok Soota and Ashok Soota Medical Research will sell 22.1 per cent equity stake for a consideration of ~1,330 crore (average price of ~395 per share).  

 

The equity stake will be acquired in two tranches under the share purchase agreement and will be funded through a rights issue by ITC Infotech. The proposed merger will be effected through a share swap, pursuant to which, equity shareholders of Happiest Minds will receive 25 shares of ITC Infotech for every 81 shares held by them.

 

 

ITC Limited will be the promoter of the merged company, with an about 73.4 per cent stake.

 

Happiest Minds said in a statement that the combined entity creates a powerful platform for the next phase of growth, with over 19,000 employees serving 800 customers. The combined entity is positioned to capture the significant opportunities emerging from artificial intelligence (AI) led transformation, the combined entity is expected to achieve $1 billion in annual revenue by financial year 2028 (FY28), it said.

 

Though the merger is subject to regulatory approvals, the combined entity, based on the revenue figures shared by ITC Infotech will create a firm with a total revenue of ~7,033 crore (around $739 million).

 

Soota, chairman and chief mentor of Happiest Minds, said, “The two organisations 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.”

 

Happiest Minds’ focus is on AI, digital engineering, cloud, data, analytics and cybersecurity, whereas ITC Infotech's expertise is in enterprise transformation, SAP, Product Lifecycle Management (PLM), cloud, Industry 4.0 and industry-specific technology solutions. Happiest Minds will give deeper access to the US markets and a sharper focus in the banking, financial services, and insurance segment for ITC Infotech.

 

"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,” said Sanjiv Puri, chairman of ITC Limited and ITC Infotech.

 

Happiest Minds reported revenue of ~2,315 crore in FY26, up 12.3 per cent from ~2,060.84 crore in FY25. Whereas, ITC Infotech’s revenue stood at ~4,718 crore.

 

The combined entity will create a more balanced international presence with expanded access to North America (38 per cent) and Europe (31 per cent).