Happiest Minds Technologies has announced its merger with ITC Infotech. This combination will enable the new structure to target larger contracts and expand its competencies amid the transformation of the service industry by artificial intelligence (AI), as well as growing attention to performance results and supplier consolidation.
Happiest Minds possesses strengths in digital engineering, cybersecurity, AI, and data. In turn, ITC Infotech specializes in areas such as SAP, enterprise applications, and Industry 4.0 solutions, which favors securing large deals.
Joseph Anantharaju, Co-Chairman and CEO of Happiest Minds, noted at a press briefing that synergies are expected to strengthen the combined entity's ability to compete in the market. He added that previously the company might have missed out on profits in the areas of enterprise applications, ERP systems, or SAP because clients chose alternative options.
The merger between Happiest Minds and ITC Infotech is part of a deal worth ₹1,330 crore, with ITC Infotech acting as the promoter of the merged company, which holds approximately 73.4 percent of the shares.
Pravin Bhadada, Managing Director and CEO of the consulting firm Neovay Global, emphasized that despite the growth of both platforms over the last five years, they face pressure due to changing macroeconomic conditions, supplier consolidation, and AI-induced disruptions. This merger creates a sufficiently large technology service platform capable of participating more aggressively in global markets.
Over the past year, Indian service companies have actively acquired smaller competitors amid slowing revenue growth, and acquisitions have become a viable way to demonstrate stable growth to investors. Among the major companies that have made such acquisitions are TCS, Infosys, HCLTech, Coforge, and Persistent.
Venkatraman Narayanan, Managing Director of Happiest Minds, stated that investments are necessary to build capabilities in certain areas. He believes that service companies must increasingly focus on product or platform solutions, which requires scale, market reach, and the ability to generate a high level of income. Both leaders announced that they will remain part of the combined company.