L&T Infotech and Mindtree on Friday announced a mega-merger to create an efficient and scaled-up IT services provider, exceeding $3.5 billion in combined revenue, according to a statement.
The name of the combined entity will be 'LTIMindtree', the statement said.
In an all-share deal, L&T Infotech will offer 73 shares for every 100 shares of Mindtree.
"Upon the scheme becoming effective, all shareholders of Mindtree will be issued shares of LTI at the ratio of 73 shares of LTI for every 100 shares of Mindtree," as per the statement.
The new shares of LTI so issued will be traded on the NSE and BSE. Larsen & Toubro Limited will hold 68.73 per cent of LTI after the merger.
The transaction is subject to shareholder and regulatory approvals.
Commenting on the merger, LTI Chairman AM Naik said, "The highly complementary businesses of LTI and Mindtree will make this integration a 'win-win' proposition for our customers, investors, shareholders, and employees".
Elaborating on the merger, Naik told reporters that DC Chatterjee will lead the merged entity.
LTI CEO Sanjay Jalona has resigned from the company, citing personal reasons.
"Given that recent industry shifts (e.g., prominence of large deals, preference for end-to-end offerings) are benefitting at-scale players, the two companies have decided that the time is appropriate to combine the strengths of both organizations to better serve the customers," the statement said.