Shares of L&T Technology Services declined 5.32% on Friday, following the announcement of acquisition of Smart World & Communication (SWC) from its parent company.
closed on its stock 3446.95 on BSE on Friday. open on company stock 3625.15. The stock has fallen 36.28 per cent from its 52-week high. 5714 reported on Jan 14, 2022.
The engineering services company on Thursday said it will acquire L&T’s Smart World & Communication (SWC) business, comprising Safe & Smart, communication and cyber security, on the back of slumping sales.
This acquisition will help LTTS strengthen its global presence in the next-gen communications sustainable space and cyber security. It will also help the tech firm with 5G offerings and services. Specifically, 5G service is expected to have a global impact of 1.3 trillion by 2030.
acquisition price 800 crore of SWC company is expected to be completed on or before March 30,2023, the company notified its stock exchange filling. Currently, Larsen & Toubro holds 73.85% shares in the company.
The acquisition will help the company move forward with its 6 Big Bets strategy that will open up new avenues of growth in 5G, digital products and AI, and sustainability. The SWC business capabilities will enhance the company’s differentiation in next generation communications with state-of-the-art solutions around 5G networks, fixed locations and also offer a full stack of cyber security solutions to our global customers.
Since its inception in 2016, Smart World & Communication has expanded its business of Network Operations Center (NOC), OSS, Datacenter, Cloud/Private 5G to over 25,000 locations across India.
It is focused on providing services in smart cities, addressing opportunities and providing smart solutions in the areas of end-to-end communication, city monitoring and intelligent traffic management system for government as well as enterprises. The company exceeded its annual revenue 1,000 crores.
With this acquisition, the company aims to enhance its operations and provide better services including design, architect, build and operate, effectively complementing a portfolio that includes NextGen Communications, Sustainable Space and Cyber Security.
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