L&T Infotech 'actively' scouting for buys in analytics, consulting

NEW DELHI: IT company L&T Infotech today said it is "activity" scouting for acquisitions to strengthen its offerings in areas such as analytics, consulting and Internet of Things.

The mid-sized IT company, which will come out with over Rs 1,200-crore IPO on July 11, said it would be interested in buys in the US, Europe or even Indian market.

"We are looking at the US and European markets predominantly as the acquisition has to cater to that market by selling to our 250-plus customers. We will also look at Indian companies that serve customers in the US and Europe," Sanjay Jalona, CEO and MD of Larsen and Toubro Infotech said at a conference.

Besides, analytics, consulting and Internet of Things, another area of interest for the company is cloud-based infrastructure transformation. Put simply, Internet of Things links smart everyday objects to the net, allowing them to send and receive data.

"Acquisition is an integral part of a services company as it helps to further strengthen the offerings. Also, innovation is happening in pockets of excellence," he said.

The IPO comprises an offer-for-sale of up to 1.75 crore equity shares by L&T Ltd. It constitutes 10.3 per cent of the post offer paid-up equity share capital of the company.

The IPO proceeds will not accrue to L&T Infotech as this is an offer for sale.

The company further said it can utilise internal resources to fund acquisitions, can borrow from the market, or may even go for a primary issue in case of a sizable acquisition in future.

Ashok Sonthalia, CFO of L&T Infotech said that while the company is "actively" looking for buyouts, it had not closed anything.

In October 2014, the company acquired ISRC from Otis Elevator Company US and Otis Elevator Company (India), units of United Technologies Corporation.

ISRC was a provider of software development work for Otis group companies.

In 2011, it acquired 100 per cent shareholding in a company from Citigroup Fund Services Canada. "This company is now known as LTIFST," said L&T Infotech's Red Herring Prospectus.