Happiest Minds, ITC Infotech to merge
As part of the deal, ITC Infotech will first buy a 22.1% stake in Happiest Minds for Rs 1,330 crore.
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Happiest Minds Technologies and ITC Infotech will merge to create an AI-focused technology services company.
As part of the deal, ITC Infotech will first buy a 22.1% stake in Happiest Minds for Rs 1,330 crore, a statement said.
ITC Infotech will buy the stake from Happiest Minds’ promoter and promoter entities in two tranches. The average price will be around Rs 395 per share.
The merger will then take place through a share swap. Happiest Minds shareholders will receive 25 shares of ITC Infotech for every 81 shares they hold in Happiest Minds.
ITC Ltd will become the promoter of the merged company, with a stake of around 73.4%.
The combined company will target $1 billion in annual revenue by FY28. It is expected to have more than 19,000 employees, over 800 customers and operations across more than 30 countries. Its pro-forma FY26 revenue is around Rs 7,033 crore.
The merger will combine Happiest Minds’ expertise in AI, digital engineering, cloud, data, analytics and cybersecurity with ITC Infotech’s capabilities in enterprise transformation, SAP, Product Lifecycle Management (PLM), Industry 4.0 and cloud.
The companies expect the larger business to compete for bigger technology projects and cross-sell services such as AI, cloud, cybersecurity, SAP and engineering to their combined customer base.
The deal still needs approvals from shareholders and regulators, including the Competition Commission of India, stock exchanges and the National Company Law Tribunal.
The companies expect the transaction to take around 15 months. Until all approvals are received, Happiest Minds and ITC Infotech will continue to operate independently.
The merged company will be listed on the stock exchanges after the required approvals are received.