LTTS acquisition: LTTS acquires silicon valley based Intelliswift for $110 million; adds 1,500 headcount

IT engineering services, L&T Tech Services (LTTS) on Monday signed an agreement to acquire Silicon Valley-based Intelliswift for a total consideration of $110 million. Through this acquisition, it aims to expand its offerings across software product development, platform engineering, digital integration, data and AI.

While declining to give details about the margin impact that the company might face though this acquisition, Amit Chadha, CEO and MD, LTTS, said, they plan to double the revenue of the acquired company in next three years.

LTTS will add 1500 employees, including 1,000 in India. Majority of Intelliswift’s revenue comes from North America.

Chadha added that software and AI are becoming essential for the company’s clients seeking to bring new products and differentiated solutions for the consumer.

“The acquisition of Intelliswift strengthens our digital and software product engineering capabilities, expands strategic client partnerships with major technology spenders, boosts our presence in Silicon Valley, and advances us towards our $2 billion medium-term goal.”

Pareekh Jain, chief executive of engineering insight platform EIIRTrend, said software product engineering was a missing piece in LTTS services mix. Now LTTS will scale this and it can have a multiplier effect in software driven digital engineering opportunities in other industry verticals.

Chadha explained, “We had earlier talked about trying to pivot in our growth dimension. We’ve acquired Intelliswift, which is a $100 million revenue company based in California focused on software product development, platform engineering and AI. Fifty percent of their revenue comes from high tech and of that, 4-5 hyperscalers are their customers. The remaining 50% comes from fintech retail, basically doing software product development, and others.”“This gives us two or three things. Immediately it adds 100 million to the company. It allows us to deepen the hyperscaler relationship (in three of the hyperscalers we are already present). This will jointly give us accounts which can immediately become over $20 million and can then be scaled to $50 million. Thirdly, it allows us to increase our footprint in digital engineering…. At a company level, we aspire to get to $1.5 billion by March 2025 and medium term we should be able to get to $2 billion.”

Also Read: LTTS net profit up 1.9% QoQ at Rs 319.6 crore