L&T Infotech to buy AI firm Lymbyc in 5th acquisition since IPO

Larsen & Toubro Infotech Ltd, the IT services arm of infrastructure major Larsen & Toubro Ltd, on Wednesday said it has signed a definitive agreement to acquire the artificial intelligence (AI), machine learning and advanced analytics company Lymbyc.

This marks L&T’s fifth acquisition since its listing in 2016. In January, the firm acquired Ruletronics, which uses the Pega platform for business process management and customer relationship management solutions. A month later, it also acquired Germany-based Nielsen Partner, which specializes in Temenos WealthSuite, an integrated software solution for wealth managers.

Across these five acquisitions, the company has committed over $50 million to date, according to the company's filings with stock exchanges.

Founded in 2012, Lymbyc is a Bengaluru-based firm known for its capabilities in analytics and data-sciences space. The company leverages its proprietary product Leni, a virtual analyst that allows users to conversationally access information and insights, to solve descriptive to predictive business insights, leveraging deep learning, natural language processing, data visualization and predictive analytics. The company has customers in the US, the UK, Africa, and India.

“We believe self-service capabilities for AI and advanced analytics will be the next wave of disruption in the marketplace, and Lymbyc brings this capability to our Mosaic platform,” said Sanjay Jalona, chief executive officer and managing director of LTI.

“Leni by Lymbyc is an industry-agnostic platform that solves business user’s need for experience, speed, and comprehension. I welcome Lymbyc’s experienced management team and all its employees to the LTI family,” he added.

The acquisition will complement the analytics, natural language processing and data visualization capabilities of its in-house Mosaic platform, helping it improve its data discovery, analytics and ability to process large datasets, the company said. Before Lymbyc's acquisiton, both firms had also worked as strategic partners for a year.

The transaction, which is expected to close in another 4- 6 weeks, would come at a cost of ₹38 crore to L&T Infotech, the company said in a stock exchange filing. LTI plans to pay in all-cash, as a combination of upfront and three-year staggered payments, it said.

“As a strategic business partner of LTI during last year, we have seen first hand how LTI is leading data and digital transformation agenda for its clients,” said Satyakam Mohanty, founder and CEO of Lymbyc.

“With AI becoming increasingly mainstream, we are excited to join hands with LTI and to help a larger and richer set of clients. Leni, our AI-based Virtual Analyst is perfectly suited to deliver better value to business users and maximize their information and analytics investments,” Mohanty added.

As on 3.10 pm, L&T Infotech's shares were trading at ₹1,627.95 apiece, down 1.23% on the BSE, while the benchmark Sensex was trading at 39,230.93 points, up 0.26%.