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LTI to acquire Powerupcloud
Posted on Friday, 18 October 2019 13:31
Larsen & Toubro Infotech (LTI) has agreed to pick up Indian cloud consulting company Powerupcloud Technologies for USD 15.00 million, to boost its own capabilities in this market as well as its digital transformation services.
Under the terms of the cash- and debt-free transaction, the purchase will be paid as a combination of upfront and earnout over a period of three years.
The all-cash deal is expected to complete within the next six weeks.
For LTI, this transaction represents its sixth acquisition since going public in 2016 and the fourth announced this year.
Powerupcloud is headquartered in Bengaluru helps clients in India, Singapore, the United Arab Emirates and the US, with over 180 employees in the areas of cloud consulting, artificial intelligence (AI) and data analytics.
Founded in 2015, the business has executed over 150 projects in cloud transformation and adds two AI-based platforms to LTI’s powerful suite of offerings.
In fiscal 2019, the exact dates of which were not disclosed, Powerupcloud generated revenue of USD 3.50 million, more than double its turnover of USD 1.70 million in the previous 12 months.
So far, LTI has picked up Ruletronics for USD 7.00 million, Nielsen + Partner Unternehmensberater for EUR 28.00 million and Lymbyc for INR 380.00 million (USD 5.34 million) in the year to date.
During the six months to 30th September 2019, the acquiror generated revenue of INR 50.56 billion, up 12.7 per cent INR 44.87 billion in the corresponding period of 2018.
Net profit after tax declined slightly to INR 7.16 billion in H1 2019 (H1 2018: INR 7.62 billion).
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 85 deals targeting Indian computer systems design and related services providers announced worldwide in 2019 to date.
Baring Private Equity Asia agreed to acquire 80.0 per cent of CitiusTech IT Solutions for USD 800.00 million in the largest of these transactions.
Other targets included Mindtree, NIIT Technologies, Mobiquity and Wipro.
© Zephus Ltd