Mindtree and Infotech Considering Merger

Issue 119

Larsen and Toubro are in talks of potentially merging two of its publicly traded software firms in hopes that the Indian conglomerate could then better compete on a global scale.

The merger would be between the two companies Mindtree Ltd. and Infotech. In which case they could be considering share swap ratios as early as next week. Mindtree and Infotech have a market valuation of $8.3 billion and $13.6 billion respectively. The two companies do not share much overlap in terms of business and clients which would allow the companies to offer better pricing and lower costs if the merger did go through.

The demand for software companies is on the rise as the Covid-19 pandemic has accelerated the need for digitalization and cybersecurity. The merger, however, is still up in the air as so far information related to it has been kept extremely private. The merger may still be delayed or dismissed.

Source: Bloomberg