The combined offerings of Mindtree and NxT Digital Business will accelerate the journey to Industry 4.0
Bengaluru-based Mindtree Ltd has signed an agreement to acquire the NxT Digital Business, the cloud-based platform of the Larsen & Toubro (L&T) Group, for a total consideration of ₹198 crore.
The acquisition is expected to enhance Mindtree’s cloud-based internet of things (IoT) and artificial intelligence (AI) capabilities for Industry 4.0, the company said in an exchange filing on Thursday.
NxT Digital Business was founded as a startup with broad digital capabilities within L&T in FY19. It has played an instrumental role in extensive applications of IoT technology and digitalization of many areas of L&T’s operations and generated revenues of ₹37.6 crore in FY21.
“NxT Digital Business leverages the group’s deep industry domain expertise with emerging technologies such as industrial IoT, AI, machine learning, augmented and virtual reality, geospatial and cybersecurity applications to deliver disruptive business outcomes for its global customers," Mindtree said.
The combined offerings of Mindtree and NxT Digital Business is expected to bring scale and market agility to meet the growing end-to-end digital transformation demands of customers. “That will help accelerate the journey to Industry 4.0, which involves smart automation of industry and manufacturing to gain agility and customer-centricity," Mindtree said.
“Industrial and manufacturing companies are starting to adopt digital technologies across the value chain, but need a partner with expertise to strategically connect the dots and generate business value from their data," said Debashis Chatterjee, chief executive officer (CEO) and managing director (MD), Mindtree. “The acquisition will complement our significant strengths in reimagining consumer experience," he said.
Mindtree will leverage the capabilities of NxT Digital Business across several industry segments in integrating sensors and telemetry data with its advanced data analytics and insights leadership to drive digitization across the manufacturing and engineering value chain.
“There is a huge opportunity ahead as global manufacturers and industrial companies are increasingly adopting Industry 4.0 focused smart solutions, systems, and processes, but are struggling to leverage data and analytics to drive efficiency and competitive advantage," said S.N. Subrahmanyan, chief executive officer and managing director, L&T Ltd.