L&T Technology Services, a wholly- owned subsidiary of Larsen & Toubro (L&T), today said it has bought 74 per cent stake in Thales Software India for an undisclosed amount.
"L&T Technology Services has purchased 74 per cent of the equity capital of Thales Software India, the Indian subsidiary of Thales, the global technology leader in aerospace, transportation and defence and security markets," L&T said in a release.
With this transaction, the company will now manage and oversee the management control, operations and delivery of services of the new JV (joint venture), it said.
"This JV represents each organisation's strong commitment to provide customers with a single source of best services in avionics industry," L&T Technology Services Chief Executive Keshab Panda said.
By retaining 26 per cent equity stake, Thales will help the company develop the latest trends in the avionics industry, one of its core businesses, he said.
"We are currently streamlining our expertise and strengthening our knowledge. In such a phase, this collaboration adds to L&T Technology Services' growing competencies," Panda added.
The transaction will enable Thales to select this new group (JV) as its Indian offset partner, resulting in inflow of offset related revenues in the joint venture.
Commenting on the JV, Eric Lenseigne, Managing Director, Thales in India said, "This (JV) is a reflection of our commitment to India and our objective to strengthen our industrial footprint in the country.
"In addition, the collaboration brings on-board a seamless integration of all elements and assures our customers quality service and highest level of long-term, local product support."
This deal comes at a time when the engineering major is aiming to become one of the largest technology services provider in the country by taking both its tech subsidiaries -- L&T Technology Services and L&T Infotech -- public.
L&T Chairman A M Nayak had said while announcing the annual results that the company will start the process for listing the two firms from July 2016.
"We are the number one firm in the engineering space. Though we are too young in the infotech business and smaller than competitors, we want to be one of the strongest brands in the country and outside," Naik had said.
L&T Technology Services provides end-to-end services, including product design, analysis, prototyping and testing, embedded system design, manufacturing engineering, plant and construction engineering, asset information management and