Happiest Minds to merge with ITC Infotech, targeting $1B revenue by FY28
Happiest Minds Technologies is merging with ITC Infotech to form a scaled AI First global technology services enterprise, targeting US$1 billion in revenue by FY28. The deal involves ITC Infotech acquiring a ~22.1% stake in Happiest Minds for ₹1,330 crore and a share swap for remaining shareholders. The merger is expected to complete within 15 months, subject to approvals.
A merger of this scale, involving a significant transaction value and aiming for substantial revenue growth, is expected to have a high impact on the companies involved and the broader IT services sector.
The announcement details a strategic merger aimed at creating a larger, more capable entity with significant revenue targets, indicating positive future prospects for the combined company.
Happiest Minds Technologies Limited has announced definitive agreements to combine its business with ITC Infotech India Limited, aiming to create a scaled AI First global technology services enterprise. The combined entity is projected to achieve US$1 billion in annual revenue by FY28, with over 19,000 employees serving more than 800 customers across over 30 countries.
The proposed combination brings together two organizations with shared values and a vision for AI-led transformation. Happiest Minds' strengths in AI, digital engineering, cloud, data, and cybersecurity will be integrated with ITC Infotech's expertise in enterprise transformation, SAP, Product Lifecycle Management (PLM), and Industry 4.0.
As part of the transaction, ITC Infotech will acquire approximately 22.1% of Happiest Minds from the Promoter and Promoter entities for ₹1,330 crore. The merger will be effected through a share swap, where Happiest Minds shareholders will receive 25 ITC Infotech shares for every 81 Happiest Minds shares held. ITC Limited will be the promoter of the merged company with a 73.4% stake.
The merger is subject to statutory, shareholder, and regulatory approvals, including from the Competition Commission of India, stock exchanges, and the National Company Law Tribunal. The companies anticipate the transaction to be completed within the next 15 months, and they will continue to operate independently until all approvals are obtained. The combined company will be listed on relevant stock exchanges post-approval.
Management commentary highlights the complementarity of business portfolios, shared values, and a common vision. The strategic rationale includes creating an AI First, Agile Always Platform with enhanced scale, integrated capabilities, industry diversification, broader geographic reach, and a strong client- and people-centric culture. The combined company expects to unlock significant growth opportunities through cross-selling, participation in large-scale transformation programs, expansion into new markets, and accelerated adoption of Generative AI and Agentic AI solutions.
A plain-language summary of a public exchange filing by Happiest Minds Technologies Limited. Read the original for the full detail.