In a sign towards consolidation within the mid-cap info know-how (IT) companies phase, Happiest Minds Applied sciences will merge with ITC Restricted’s tech subsidiary ITC Infotech. IT sector veteran and Happiest Minds Founder Ashok Soota and Ashok Soota Medical Analysis will promote 22.1 per cent fairness stake for a consideration of ~1,330 crore (common worth of ~395 per share).
The fairness stake will likely be acquired in two tranches below the share buy settlement and will likely be funded via a rights subject by ITC Infotech. The proposed merger will likely be effected via a share swap, pursuant to which, fairness shareholders of Happiest Minds will obtain 25 shares of ITC Infotech for each 81 shares held by them.
ITC Restricted would be the promoter of the merged firm, with an about 73.4 per cent stake.
Happiest Minds mentioned in an announcement that the mixed entity creates a robust platform for the following section of development, with over 19,000 workers serving 800 prospects. The mixed entity is positioned to seize the numerous alternatives rising from synthetic intelligence (AI) led transformation, the mixed entity is predicted to attain $1 billion in annual income by monetary yr 2028 (FY28), it mentioned.
Although the merger is topic to regulatory approvals, the mixed entity, based mostly on the income figures shared by ITC Infotech will create a agency with a complete income of ~7,033 crore (round $739 million).
Soota, chairman and chief mentor of Happiest Minds, mentioned, “The 2 organisations are aligned on our values and shared imaginative and prescient for the longer term. There’s very vital complementarity in our enterprise portfolios, which is able to guarantee synergy. We consider that ITC Infotech is one of the best companion for Happiest Minds to fulfil its future and we’re happy that our group can have a welcoming new house.”
Happiest Minds’ focus is on AI, digital engineering, cloud, information, analytics and cybersecurity, whereas ITC Infotech’s experience is in enterprise transformation, SAP, Product Lifecycle Administration (PLM), cloud, Trade 4.0 and industry-specific know-how options. Happiest Minds will give deeper entry to the US markets and a sharper focus within the banking, monetary companies, and insurance coverage phase for ITC Infotech.
“The approaching collectively of our complementary strengths, deep area experience and future-ready capabilities will additional improve our capability to ship cutting-edge options throughout geographies. I’m significantly inspired by the shared values, folks and buyer centricity that outline our organisations,” mentioned Sanjiv Puri, chairman of ITC Restricted and ITC Infotech.
Happiest Minds reported income of ~2,315 crore in FY26, up 12.3 per cent from ~2,060.84 crore in FY25. Whereas, ITC Infotech’s income stood at ~4,718 crore.
The mixed entity will create a extra balanced worldwide presence with expanded entry to North America (38 per cent) and Europe (31 per cent).
