LTI and Mindtree to merge, forming a $3.5 bln revenue company as IT services demand kicks into high gear

Larsen & Toubro Infotech (LTI) and Mindtree will merge to form a larger IT services company that could be more capable of challenging bigger rivals for digital transformation contracts and global talent. LTI chief executive Sanjay Jalona is leaving and Mindtree’s boss Debashis Chatterjee is to lead the combined business. Notes: The combined entity is to be called LTIMindtree, the L&T group companies told the stock exchanges on Friday after markets in Mumbai. LTI CEO and MD Sanjay Jalona, a former Infosys executive who took LTI public six years ago, and is widely seen as responsible for its bigger play today, has resigned. Debashis Chatterjee, a former senior executive at Cognizant Technology Solutions, who joined Mindtree as CEO and MD in August 2019, after L&T group acquired the Bengaluru company, has been named to lead the combined entity. LTIMindtree would become India’s sixth-biggest IT services company by revenue, with combined sales of more than $3.5 billion for the year that ended March 31, 2022. The combine would be the fifth-biggest IT company by market cap, at $18.3 billion, surpassing Tech Mahindra’s $16.2 billion, as things stood on Friday. Tech Mahindra remains larger, by revenue, with annual sales of over $6 billion. Theme music courtesy Free Music & Sounds: https://soundcloud.com/freemusicandsounds