Overview
L&T Technology Services (LTTS) has announced the sale of its Smart World and Communication (SWC) division to AMI Paradigm Solutions for ₹452 crore. This move aligns with LTTS's five-year strategy to concentrate on digital and engineering capabilities.
Transaction Details
The deal will be executed on a slump sale basis, with adjustments for working capital, net debt, and other conditions. The transaction is anticipated to be finalized by September 30, 2026.
About AMI Paradigm Solutions
AMI Paradigm Solutions is a special purpose entity established by ParadigmIT Technology Services Private Limited, aimed at enhancing public systems and critical infrastructure.
Joint Venture Structure
The business transfer agreement will see the buyer as a joint venture between ParadigmIT and AM Intelligence Labs Private Limited, which is backed by the founders of the Greenko Group.
Strategic Focus of LTTS
This divestment is part of LTTS's strategy to concentrate on manufacturing, industrial, and technology-led enterprise segments, pivoting to engineering intelligence under its Lakshya plan.
“We are reframing our strategic bets, with software and digital manufacturing as key focus pillars,” said Amit Chadha, CEO of LTTS.
Financial Impact
The SWC unit, which includes smart and safe communications segments, generated ₹1,027.95 crore in revenue for FY25, representing 9.63% of LTTS's consolidated revenue.
Future Vision
Anil Chalamalasetty, chairman of AM Group, emphasized the importance of translating technological advancements into practical applications. Sridhar Gadhi from ParadigmIT expressed that the merger would create an AI-led platform focused on outcome-driven systems for governments and enterprises.
