ITC Infotech to Merge with Happiest Minds in ₹1,330 Cr Deal

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 ITC Infotech, a wholly owned subsidiary of ITC Ltd., has entered into definitive agreements to acquire a 22.106% promoter stake in Happiest Minds Technologies ( !HAPPSTMNDS ) for ₹1,329.72 crore. The acquisition will be followed by the proposed amalgamation of Happiest Minds with ITC Infotech, subject to statutory, shareholder and regulatory approvals. The promoter stake purchase will take place in two tranches. ITC Infotech will first acquire an 11% stake at ₹390 per share, followed by an 11.106% stake at ₹400 per share. How Will the Merger Work? Under the proposed share-swap arrangement, Happiest Minds shareholders will receive 25 equity shares of ITC Infotech for every 81 shares of Happiest Minds they hold. Once the merger becomes effective, ITC Infotech is proposed to be listed on the BSE and NSE. Why Does the Merger Matter? The combination brings together Happiest Minds' capabilities in AI, digital engineering, cloud, data, analytics and cybersecurity with ITC Infotech's expertise in enterprise transformation, SAP, Product Lifecycle Management and Industry 4.0 solutions. The combined entity will have a workforce of over 19,000 employees and aims to build an AI-first technology services business targeting $1 billion in annual revenue by FY28. The companies expect to benefit from greater scale, complementary capabilities and cross-selling opportunities across customers and industries. The transaction is expected to be completed within approximately 15 months, subject to the required approvals. Until then, the two companies are expected to continue operating independently. Source: The Economic Times No Recommendations