L&T Technology Services declines 5% on plans to buy SWC biz from parent L&T
Published On: Friday, January 13, 2023 | By: Team KnowMyStock
Shares of L&T Technologies Services (LTTS) dipped 5.5 percent to Rs 3,441 on the BSE in Friday’s intra-day trade after the company informed the stock exchanges that it agreed to acquire the Smart World & Communications business (SWC) of its parent company Larsen & Toubro (L&T) which was founded in 2016 to cater to the demands in smart cities, smart utilities, and digital infrastructure. by way of a slump sale for a consideration of Rs 800 crore. The acquisition will be completed in three months, subject to satisfaction of conditions precedent identified under the agreement. According to LTTS, SWC business generated Rs 1,098 crore in annual revenue for FY 2021-22. SWC is an intelligence solution provider operating in three segments – communications, safe and smart solutions, and cybersecurity. With the acquisition, LTTS plans to combine synergies and take offerings in next-gen communications, sustainable spaces, and cybersecurity to the global market.
The coming together of the LTTS and SWC teams will address the entire gamut of digital offerings including design, architect, build & operate, effectively catering to the portfolios encompassing next-gen communications, sustainable spaces, and cybersecurity.
SWC has expertise in the area of Next-Gen Communications and has been instrumental in the network design, planning, implementation, and management including Network Operations Center (NOC), OSS, Datacenter, Cloud/Private 5G of over 25,000 locations across India, according to the statement.
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