ITC Infotech Expands Cloud Expertise with Blazeclan Acquisition

ITC Limited, a leading Indian conglomerate with a diversified presence in the Fast-Moving Consumer Goods (FMCG) sector, recently announced a strategic move to bolster its subsidiary’s cloud computing capabilities. On April 18, 2024, ITC Infotech India Limited, a wholly-owned subsidiary of ITC, entered into a Share Purchase Agreement to acquire 100% ownership of Blazeclan Technologies Private Limited. This acquisition signifies ITC Infotech’s commitment to staying ahead of the curve in the ever-evolving cloud technology landscape.

Aligning with Market Demands

Blazeclan, the target company, boasts a distinguished reputation as a “born-in-the-cloud” consulting firm. Recognised as a Niche Player in the prestigious 2023 Gartner® Magic Quadrant for Public Cloud IT Transformation Services, Blazeclan offers a comprehensive suite of cloud services on leading platforms like AWS, Azure, and GCP.

Strategic Benefits of the Acquisition

The acquisition of Blazeclan presents a multitude of advantages for ITC Infotech:

Enhanced Multi-Cloud and Hybrid Cloud Expertise: By integrating Blazeclan’s expertise, ITC Infotech strengthens its ability to cater to clients operating in multi-cloud and hybrid cloud environments. This aligns perfectly with the growing demand for flexible and scalable cloud solutions.

Focus on Partner Ecosystem: The acquisition underscores ITC Infotech’s commitment to fostering a robust partner ecosystem. Leveraging Blazeclan’s established network of partners can accelerate ITC Infotech’s future growth and expand its reach within the cloud services market.

Empowering Digital Transformation: The combined expertise of both companies will allow ITC Infotech to empower clients to navigate their digital transformation journeys further. By offering a wider range of cloud-based solutions and services, they can help clients achieve significant business outcomes built on a strong cloud foundation.

Consideration and Timeline Details

This strategic acquisition will be settled entirely through a cash payment. ITC Infotech India Limited will pay a total consideration of ₹485 crore, which includes a contingent component based on the achievement of specific performance targets. The acquisition process is expected to be finalised within 6 to 8 weeks, subject to the completion of standard closing conditions.

A Step Towards Future Growth

The acquisition of Blazeclan signifies a significant step forward for ITC Infotech. By integrating Blazeclan’s expertise and leveraging its partner network, ITC Infotech positions itself as a leading player in the dynamic cloud computing landscape. This strategic move strengthens their ability to cater to the evolving needs of clients and contribute to their digital transformation journeys, ensuring a promising future for ITC Infotech within the rapidly growing cloud services market.

About ITC Limited

Incorporated in 1910, ITC is one of the leading cigarette manufacturers and sellers in India. The company operates in 5 business segments, including FMCG Cigarettes, FMCG Others, Hotels, Paperboards, Paper and Packaging, and Agri-Business. On April 19, 2024, the shares of the company opened at ₹417.60 and touched the day high of ₹424.80 at 12:48 PM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.