L&T Technology Services To Acquire Smart World & Communication Business Of L&T Ltd.

·         LTTS to strengthen global reach across Next-Gen Communications, Sustainable Spaces and Cybersecurity through this acquisition

·         Acquisition is a continuation of LTTS’ 6 Big Bets strategy in 5G, Sustainability and Digital Products & AI

L&T Technology Services Limited (BSE: 540115, NSE: LTTS), a global leading pure-play engineering services company, today announced that it has agreed to acquire the Smart World & Communication (SWC) Business of L&T, enabling LTTS to combine synergies and take offerings in Next-Gen Communications, Sustainable Spaces and Cybersecurity to the global market.

Smart World & Communication was founded in 2016 to cater to the demands in smart cities, address opportunities and provide smart solutions in the areas of end-to-end communications, city surveillance and intelligent traffic management system for the Government as well as enterprises. It has an employee base of over 700 engineers from diversified technology domains and has crossed an annual revenue of INR 1,000 Crores.

The coming together of the LTTS and SWC teams will address the entire gamut of digital offerings including design, architect, build & operate, effectively catering to the portfolios encompassing Next-Gen Communications, Sustainable Spaces and Cybersecurity.

SWC’s strong expertise in the area of Next-Gen Communications has been instrumental in the network design, planning, implementation and management including Network Operations Center (NOC), OSS, Datacenter, Cloud/Private 5G of over 25,000 locations across India. It has assisted multiple state governments in India with network operating centers and network management systems while establishing end-to-end network connectivity projects such as TANFINET and Telangana Fiber Grid. SWC has created gEDGE data centers with a lot of innovation resulting in up to 40 percent reduction in power consumption and up to 30 percent savings in capex.

LTTS has been an early mover in the global communications domain, identifying 5G as a Big Bet in 2020. Today, LTTS’ 5G offerings and services have resulted in the company taking complete ownership of 10+ Labs-as-a-Service for customers, 5G network assurance with over 100 use cases for clients, and more than 100 product families developed for OEMs globally.

5G is expected to have a global impact of $1.3 trillion by 2030 and LTTS with SWC believes that together, it is in a stronger position to continue to win and execute large scale transformational programs in India and globally in this segment.

In Sustainable Spaces, SWC brings capabilities around public safety, smart cities, critical infrastructure and smart metering along with L&T Fusion Platform and Integrated Command and Control Center (IC3). Implementation of mega public safety projects were completed in Mumbai,

Hyderabad and Nagpur where tens of thousands of devices including cameras and network equipment have been rolled out for city level projects. Another notable measure of success is the Prayagraj Smart City program, an AI based crowd management project which has successfully managed over 250 million people. SWC has also implemented smart metering in states like Uttar Pradesh, Haryana and Delhi to the tune of 6 million meters.

LTTS brings smart building and experience management capabilities through its i-BEMS platform that has been deployed in the ‘world’s smartest office campus’ in Israel with over 14,000 sensors. Together, LTTS and SWC will address a larger market of $390 billion globally for sustainable spaces.

In Cybersecurity, SWC brings Full Lifecycle Threat Management capabilities, with offerings in risk assessment, threat monitoring, security architecture, design, and DevSecOps.

LTTS has been offering Cybersecurity services to its OT and product customers globally.

The joint team of LTTS and SWC would provide Security Operating Centers (SOC), full lifecycle threat management, OT cybersecurity and product security credentials and address the demands of the projected $376 billion cybersecurity market.

Commenting on the occasion, Mr. S. N. Subrahmanyan, Chief Executive Officer & Managing Director, Larsen & Toubro Limited remarked: “Smart World & Communication has created a niche for itself in the communications and smart spaces domain across developing markets. By combining with a global engineering services player like LTTS, its offerings across next-gen networks, smart spaces, and cybersecurity will help unlock new synergies across the technology spectrum. LTTS is well-positioned to take these capabilities to the global market, cementing its robust leadership in the engineering and technology domain.”

Amit Chadha, CEO & Managing Director, L&T Technology Services said “The acquisition of SWC is a progression of LTTS’ 6 Big Bets strategy with a direct bearing on 5G, Digital Products & AI, and Sustainability. SWC’s capabilities will enhance LTTS’ differentiation in the exciting field of next-gen communications with cutting edge solutions around 5G networks, sustainable spaces, along with a full stack of cybersecurity solutions to our global clientele. The combined team of LTTS and SWC will take these offerings incubated in India to the World while bringing best practices to Indian and global customers. On behalf of all employees at LTTS, I express my gratitude to the L&T management for putting their confidence in us and extend a warm welcome to all our colleagues at SWC. Look forward to doing exciting transformational programs together”.

The acquisition is subject to customary closing and approvals.

About L&T Technology Services Ltd

L&T Technology Services Limited (LTTS) is a listed subsidiary of Larsen & Toubro Limited focused on Engineering and R&D (ER&D) services. We offer consultancy, design, development and testing services across the product and process development life cycle. Our customer base includes 69 Fortune 500 companies and 57 of the world’s top ER&D companies, across industrial products, medical devices, transportation, telecom & hi-tech, and the process industries. Headquartered in India, we have over 21,400 employees spread across 20 global design centers, 28 global sales offices and 90 innovation labs as of September 30, 2022. For more information, visit https://www.ltts.com/