Larsen & Toubro To Buy 21% Stake In Cloud Company E2E Networks For $167 Mln
L&T also agrees to enter into a software license agreement, reseller agreement and colocation agreement with E2E Networks
(The Corner Office Journal) -- Larsen & Toubro Ltd. (L&T) agreed to acquire a 21% stake in Indian cloud company E2E Networks Ltd. for a total of 1,407.02 crore rupees ($167 million).
The company also agreed to enter into a software license agreement, reseller agreement and colocation agreement with E2E Networks, the Indian tech-led conglomerate said in a stock exchange announcement.
Delhi-based E2E Networks, founded in 2009, offers public cloud services to its customers. The company specializes in providing CPU and GPU-based cloud computing platforms to help its customers carry out large scale general and AI-workloads by leveraging its relationship with Nvidia.
L&T said the partnership is a significant step toward the adoption of GenAI solutions in India to foster a fundamental shift in the way accelerated computing on cloud is used by Indian organizations.
Under the alliance, L&T will integrate NSE-listed E2E Networks’ cloud and AI cloud platform with its expertise in data center management and cloud solutions toward empowering start-ups, and enterprises, it added.
Acquisition Intricacies
L&T plans to acquire a total of 41.71 lakh shares, or a 21% stake, in E2E Networks through a combination of primary and secondary transactions.
The Mumbai-based company will acquire 29.80 lakh shares, or a 15% stake, in E2E Networks via a preferential allotment at 3,622.25 rupees apiece, aggregating to 1,079.27 crore rupees.
In addition, L&T will buy 11.91 lakh shares, or a 6% stake, in E2E Networks from its founder at 2,750 rupees each, aggregating to 327.75 crore rupees.
The stake acquisition is expected to be completed by 31 December 2024.
Note: $1 = 84.1227 Indian rupees
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