L&T Technology Services to acquire Dell's engineering services division
08 October 2014
L&T Technology Services, a wholly-owned subsidiary of engineering giant Larsen & Toubro (L&T), will acquire engineering services division of IT major Dell. The financial details of the acquisition were not disclosed.
The company has received approvals from the Competition Commission of India (CCI), and is awaiting US regulatory approvals which are expected shortly, it said in a statement.
''Product engineering is undergoing structural shifts with evolving technologies, shorter development cycles, regulatory demands, and a shortage of skilled talent,said Keshab Panda, chief executive of L&T Technology Services.
This is a tremendous opportunity for us to have a strong local presence in North America where a majority of our clients are based''
''That along with Dell Engineering Services' strong expertise in embedded and mechanical design & analysis and a history of successful relationships in North America will help us ride the next level of growth,'' he added.
The transaction is expected to close by in this quarter, subject to certain regulatory approvals.
The proposed transaction will significantly drive forward L&T Technology Services' position as a premier engineering services provider by adding local delivery centres in North America.
Dell Engineering Services also has delivery centres in Hyderabad and Bangalore. This will enhance L&T Technology Services' ability to offer differentiated technology solutions and full programme management services by leveraging global-local talent base at any point in the product development cycle.
This proposed acquisition enables L&T Technology Services to consolidate its position as preferred vendor in the $4 billion transportation market.
The acquisition will enable L&T Technology Services to leverage the customer base and complementary capabilities of Dell Engineering Services along with L&T Technology Services' broader portfolio of Embedded and PLM offerings, supported by a global sales force.
Headquartered in Peoria, Illinois, Dell Engineering Services has over 15 years of extensive experience in mechanical design & analysis, embedded engineering, applied engineering, and manufacturing consulting across multiple industries.
It has marquee clients in North America, especially in the transportation industry.
Following the announcement, shares in L&T rose up as much as 2.5 per cent. At 2.25 pm, shares in the company were trading up by 1.49 per cent at Rs 1,435.75.