LTIMindtree Secures 51% Stake in Saudi Digital Venture

On March 6, 2024, the IT service provider, LTIMindtree, signed an agreement with Global Digital, an arm of Saudi Aramco, for IT services in the Middle East and North Africa (MENA) region.

LTIMindtree’s New Joint Venture

LTIMindtree is the 6th largest IT services firm by revenue in India. As of FY 2023, the company has $4.1 billion in revenue. The IT service provider will make an initial investment of $12.3 million (about ₹101.96 crore) in one or more tranches. LTIMindtree got a 51% controlling stake in a new Joint Venture (JV) formed with Global Digital Integrated Solutions Company. Global Digital will own the remaining 49%.

According to LTIMindtree, the JV entity was set up to promote and implement cutting-edge technology across government and private sector companies in the Kingdom of Saudi Arabia (KSA) and the broader MENA region, which includes countries like the UAE, Bahrain, Oman, Kuwait, Saudi Arabia, Qatar, Iraq, Lebanon, Jordan, Libya, Egypt, Tunisia, Morocco and Algeria.

The joint venture’s objective is to drive digital transformation in Saudi Arabia, sharing IT expertise, enabling the growth of the digital economy by bridging gaps, and developing a strong ecosystem for IT and Digital Transformation services in the country.

Also, the JV presents an attractive financial opportunity and the potential to expedite the digital transformation of Saudi Arabia through collaborative innovation. This involves the development of shared intellectual property and aligning it with Saudi Arabia’s Vision 2030.

The JV’s board will have five members, where the primary stakeholder, LTIMindtree, appoints/removes three and Global Digital Integrated Solutions Company appoints/removes two. LTIMindtree also informed that initially, the authorised capital of the joint venture would be 5,00,000 Saudi riyals (around ₹1.10 crore)

On Thursday, March 7, 2024, shares of LTIMindtree opened about 0.11% higher at ₹5170.15. On Wednesday, the LTIMindtree closed at ₹5,164.20 on NSE.

About LTIMindtree

LTIMindtree is a leading global technology consulting and digital solutions company. The company has a strong presence in more than 35 countries in the world. LTIMindtree comes under Larsen & Toubro (L&T), a global conglomerate that provides engineering, technology, financial, construction and more services.

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.