L&T Technology Services Ltd, a leading global provider of digital engineering and research and development services, announced that it has entered into a business transfer agreement. The company will sell its Smart World and Communication (SWC) business unit to AMI Paradigm Solutions Private Limited on a slump sale basis.

The Smart World and Communication section, which includes the smart & safe and communications segments, will transfer its contracts, intellectual property, and staff to the buyer.

The sale price is Rs 452 crore, subject to modifications for working capital, net debt, and other criteria stated in the agreement. Furthermore, the transaction is expected to complete on or before 30 September 2026.

In FY 2024-25, the Smart World and Communication unit contributed Rs 1,027.95 crore to L&T Technology Services’ consolidated revenue. It also added a net worth of Rs 445.89 crore, accounting for 7.31% of the company’s overall net worth.

AMI Paradigm is a special-purpose entity founded by ParadigmIT Technology Services Private Ltd and AM Intelligence Labs Private Ltd. Notably, these companies are promoted by the Greenko Group’s founders.

The buyer’s primary objective is to advance AI for public systems and critical infrastructure services. AM Green B.V., an organization that shares ultimate ownership with AM Intelligence, has signed a guarantee deed to ensure payment of the acquisition price. In addition, L&T technological Services’ five-year Lakshya Plan focuses expenditures on six core technological areas. It places special emphasis on Engineering Intelligence (EI).

The divestiture of the Smart World and Communication unit will allow L&T Technology Services to focus cash and resources on high-growth EI initiatives. Moreover, the company will continue expanding its Mobility, Technology, and Sustainability divisions.

The transaction is solely cash-based and does not involve any associated parties. Regulatory permits are not required, and the sale does not come under the Companies Act of 2013 Scheme of Arrangement.

Amit Chadha, CEO and Managing Director, L&T Technology Services, said, “As we pursue long-term value creation for our stakeholders, we are reframing our strategic bets, with EI, Software and Digital Manufacturing as key focus pillars in our select segments of Mobility, Sustainability and Tech.

We believe these will drive faster growth opportunities for LTTS. AMI Paradigm, by integrating SWC’s public sector capabilities, will strengthen its AI offerings, while creating a robust platform for Smart World employees and delivering enhanced value to our existing clients.”

Anil Chalamalasetty, Chairman, AM Group, said, “Advances in clean energy, high-performance computing infrastructure, and accelerator chipsets are unlocking unprecedented AI compute power. The real transformation, however, lies in translating this foundation into domain-specific intelligence and real-world applications.

The Smart World & Communication business represents this critical layer, operationalising AI for mission-critical systems across governments, cities, utilities, transport networks, and enterprises. This enables more autonomous, data-driven infrastructure and decision-making.”

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