Larsen & Toubro Infotech Ltd said on Thursday it has agreed to acquire consultancy PowerupCloud Technologies Pvt. Ltd as part of efforts to strengthen its cloud services capabilities.
The unit of engineering giant Larsen & Toubro Ltd said in a stock-exchange filing it will buy PowerupCloud at an enterprise value of $15 million (Rs 106.8 crore) on a cash-free, debt-free basis. The amount is subject to working capital adjustments.
The company said it will pay part of the money upfront and the remaining as an earn-out over three years. The all-cash deal is subject to customary closing conditions which are likely to get completed within six weeks, it added.
PowerupCloud has capabilities in cloud consulting, migration, DevOps automation, cloud native application development, managed services, data warehousing, machine learning and big data. The company’s headquarters is in Bengaluru, and it has offices in Coimbatore, Singapore and Chicago. It has about 180 employees.
The consultancy was set up in 2015 and reported revenue of $3.5 million for the year through March 2019, up from $1.7 million the year before and $960,000 for 2016-17.
L&T Infotech provides services in segments such as cloud computing, IT consulting, infrastructure services, assurance services and cyber defence resiliency services.
PowerupCloud is the sixth acquisition by L&T Infotech since it went public in June 2016 and fourth this year.
In July, the company decided to acquire advanced analytics company Lymbyc Solutions Pvt. Ltd to strengthen its digital and analytics offerings.
In February, the company said it would acquire German information technology consulting and software services company Nielsen+Partner Unternehmensberater GmbH for an enterprise value of €28 million ($31.5 million) in cash.
In January, it had agreed to acquire Ruletronics Systems for $7.48 million. Previously, it bought Luxembourg-based IT services firm Syncordis SA in 2017 and Pune-based data analytics startup AugmentIQ Data Sciences Pvt. Ltd in 2016.
Separately, parent L&T took control of software services company Mindtree Ltd through a hostile bid this year.