L''T Acquires 21% Stake in E2E Networks for Rs 1,407 cr

New Delhi, Nov 5 (PTI) Infrastructure major Larsen & Toubro (L&T) on Tuesday said it will acquire 21 per cent stake in E2E Networks Ltd, a cloud services company, for Rs 1,407.02 crore.

The move assumes significance as it will increase L&T's reach in cloud and AI services -- the key growth areas in the technology sector.

"The company has entered into an investment agreement on November 5, 2024 for the acquisition of up to 21 per cent stake in E2E Networks Ltd," L&T said in a regulatory filing.

L&T will make an investment of Rs 1,079.27 crore for a 15 per cent stake via preferential allotment and Rs 327.75 crore for an additional six per cent stake through secondary acquisition, the filing said.

The acquisition of stake in E2E Networks is likely to be completed by December 31.

L&T will not acquire control in E2E Networks and will be a minority shareholder with certain protective rights.

"The acquisition is complementary to the market approach in the fast-growing areas of AI and cloud services. Along with the acquisition, the company also proposes to enter into a software license agreement, reseller agreement and colocation agreement with E2E Networks," the filing said.

In a statement, the company said the partnership is a step towards the adoption of GenAI solutions in the country to promote a fundamental shift in the way accelerated computing on cloud is used by the organisations in India.

Under the collaboration, L&T will integrate E2E Networks' Cloud and AI Cloud platform with its expertise in data centre management and cloud solutions towards empowering startups, and enterprises.

The partnership aims to accelerate digital transformation for a diverse range of industries, fostering a technology-driven, sustainable future for India.

"Collaborating with E2E Networks allows us to offer our clients seamless, scalable and secure cloud experiences. By combining our capabilities, we are delivering a cloud ecosystem designed for businesses in India that wants to drive growth, optimise costs and unlock the full potential of AI and digital transformation," Seema Ambastha, Chief Executive of L&T Data Centre and Cloud Business said.

Delhi-based E2E Networks Ltd is an Indian cloud company offering public cloud services to customers.

"The strategic collaboration between E2E Networks and L&T marks a significant milestone for the future of adoption of domestically built HyperScaler Cloud Platforms in India. The partnership marks the next step in the journey towards 'Make in India'," E2E Networks Chairman and Managing Director Tarun Dua said.