Venu Lambu, Managing Director & Chief Executive Officer of LTM, said the deal fits into the company’s broader strategy and should be seen as more than just an acquisition. “This fits very well with our strategic aspiration of doubling revenue over five years,” Lambu said, adding that the transaction will help create a more balanced portfolio across markets and service offerings.
Lambu said the acquisition brings in a business with more than $500 million in revenue across Europe and Australia, regions where the company currently sees significant growth opportunities. Management expects the deal to improve scale, strengthen customer relationships and open up opportunities in offshore delivery and large transformation projects.
LTM expects the acquisition to significantly improve its international scale. Europe is projected to become a more than $1 billion revenue market for the company, while Australia could scale to nearly $150 million in revenue, strengthening its ability to compete for larger enterprise deals. A major focus area going forward will be AI-led transformation and Global Capability Center (GCC) opportunities, especially as multinational companies increase investments in India-based operations. LTM expects to support clients across enterprise IT requirements as well as broader engineering and consulting mandates.
The company also maintained that the acquisition is unlikely to affect profitability in the near term. While the acquired entity has seen a decline in revenue in recent years, management believes the business has room to grow under LTM’s delivery model and global capabilities.
“We are not calling out any material impact on margins,” Lambu said, adding that the deal is expected to remain EPS-neutral initially, while creating long-term value over time.
The stock closed at ₹4,008.20 in today’s trading session on the NSE and has declined by more than 10% over the past year.
LTM’s current market capitalization is ₹1,18,921.42 crore.
For full interview, watch accompanying video
