The diversified conglomerate ITC Ltd announced on Monday that its wholly-owned subsidiary, ITC Infotech, will acquire a 22.1 percent stake in Happiest Minds Technologies. The deal is valued at approximately 1330 crore rupees.
This acquisition is part of an agreement that will lead to the merger of the two companies into a $1 billion technology giant. The purchase of 33,661,700 shares will be carried out in two phases from Happiest Minds promoter, Ashok Soota, and Ashok Soota Medical Research LLP, as stated in ITC's regulatory filings.
Following the purchase of the stake in Happiest Minds, it will merge with ITC Infotech. After this merger, ITC Limited will own 73.4 percent of the combined entity, while Happiest Minds shareholders will retain the remaining 26.6 percent.
The combined organization, which will bring together over 19,000 specialists, aims to become an artificial intelligence-focused enterprise and achieve a revenue of $1 billion by the 2028 fiscal year. It is also planned that after the merger, ITC Infotech will be listed on the BSE and National Stock Exchange (NSE).
Sanjiv Puri, Chairman of ITC Limited and ITC Infotech, noted that combining their complementary strengths, deep industry expertise, and future readiness capabilities will significantly enhance the company's ability to provide advanced solutions across various regions. He also expressed satisfaction with the shared values and focus on people and customers that define both organizations, and looks forward to the experience, knowledge, and dedication of Happiest Minds employees at the start of this new chapter.