ITC Infotech To Acquire 22.1% In Happiest Minds, Merged Entity To Target $1 Bn Revenue

ITC Infotech, the wholly owned technology services arm of ITC Ltd, will acquire a 22.1% stake in Happiest Minds Technologies for around ₹1,330 crore and subsequently merge the two companies, as the group looks to build a larger technology services business.

The ITC Infotech board has approved the acquisition of 3,36,61,700 equity shares from Happiest Minds promoter Ashok Soota and Ashok Soota Medical Research LLP in two tranches, as per PTI.

The transaction will be funded through a rights issue by ITC Infotech.

Following the stake purchase, Happiest Minds will be amalgamated with ITC Infotech under a proposed Scheme of Amalgamation.

ITC Infotech said the transaction is subject to statutory, shareholder and regulatory clearances, including approvals from the Competition Commission of India, stock exchanges and the National Company Law Tribunal.

Combined Entity To Target ₹1 Billion Revenue

The merged business will have a global workforce of more than 19,000 professionals and will target revenue of $1 billion by FY28, the company said.

The combination will bring together ITC Infotech’s capabilities in cloud, data analytics, product lifecycle management, SAP, enterprise transformation and managed services with Happiest Minds’ expertise in digital product engineering, data, cybersecurity and specialised AI services.

The companies expect the merger to strengthen their ability to pursue larger technology transformation contracts while expanding their presence in the US and the banking, financial services and insurance sectors.

Healthcare, Hi-Tech and EdTech are also expected to become part of ITC Infotech’s expanded portfolio.

ITC Ltd will hold 73.4% of the merged entity after the amalgamation, while existing Happiest Minds shareholders will own the remaining 26.6%, as per PTI.

ITC Infotech Listing Planned

Shares of ITC Infotech are proposed to be listed on the BSE and National Stock Exchange following completion of the amalgamation.

The companies expect the transaction to be completed within the next 15 months and will continue to operate independently until the required approvals are secured, ITC Infotech said.

Sanjiv Puri, Chairman, ITC Limited & ITC Infotech, said, "The coming together of our complementary strengths, deep domain expertise and future-ready capabilities will further enhance our ability to deliver cutting-edge solutions across geographies."

"I am particularly encouraged by the shared values, people and customer-centricity that define our organisations. We look forward to the invaluable experience, expertise and dedication of the employees of Happiest Minds as we embark on this exciting new chapter."