Infrastructure major Larsen & Toubro (L&T) on Tuesday said it will acquire 21 per cent stake in E2E Networks Ltd, a cloud services company, for Rs 1,407.02 crore.
The move assumes significance as it will increase L&T's reach in cloud and AI services -- the key growth areas in the technology sector.
"The company has entered into an investment agreement on November 5, 2024 for the acquisition of up to 21 per cent stake in E2E Networks Ltd," L&T said in a regulatory filing.
L&T will make an investment of Rs 1,079.27 crore for a 15 per cent stake via preferential allotment and Rs 327.75 crore for an additional six per cent stake through secondary acquisition, the filing said.
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The acquisition of stake in E2E Networks is likely to be completed by December 31.
L&T will not acquire control in E2E Networks and will be a minority shareholder with certain protective rights.
"The acquisition is complementary to the market approach in the fast-growing areas of AI and cloud services. Along with the acquisition, the company also proposes to enter into a software license agreement, reseller agreement and colocation agreement with E2E Networks," the filing said.
Delhi-based E2E Networks Ltd is an Indian cloud company offering public cloud services to its customers.
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