Larsen & Toubro Infotech Limited (LTI) has signed a definitive agreement today after the Board of Directors of the Company at its meeting held today have approved acquisition of 100% shareholding of PowerupCloud Technologies Private Limited, having its registered office in Tamil Nadu and headquartered in Bangalore along with its' additional offices in Coimbatore, Singapore and Chicago.
PowerupCloud Technologies Private Limited ('PowerupCloud') having its registered office in Tamil Nadu and operating from its Bangalore office is an AWS Premier Consulting partner with capabilities in Cloud Consulting, migration, cloud native application development and managed services, data warehousing, BI dashboards, machine learning and Big Data and having product platforms Viz. 'Cloud Ensure: and 'Botzer'. PowerupCloud also specializes in Azure and GCP Cloud platforms.
It has over 180 employees with capabilities in cloud consulting, cloud managed services, Al and Data Analytics. The revenue for FY19 stood at USD 3.50 million.
This acquisition will help LTI strengthen its cloud services capabilities through a combination of right leadership, team, assets and ecosystem connects, which in turn will enable LTI to provide better services to its existing and new clients.
The enterprise value for 100% share capital of PowerupCloud is USD 15 million on a cash-free, debt-free basis subject to working capital adjustments. The consideration, will be paid as a combination of upfront and an earn-out over a period of three years.
The acquisition is subject to customary closing conditions which are expected to get completed within 6 weeks. The Company will inform the closure of the transaction to the Stock Exchange in the due course.
Shares of Larsen & Toubro Infotech Ltd was last trading in BSE at Rs.1498.9 as compared to the previous close of Rs. 1524.35. The total number of shares traded during the day was 25245 in over 1490 trades.
The stock hit an intraday high of Rs. 1540.9 and intraday low of 1494. The net turnover during the day was Rs. 38023761.