L&T Technology Services, a wholly-owned subsidiary of $14.3 billion Larsen & Toubro (L&T), is acquiring the assets of US-based Dell Product and Process Innovation Services, the engineering division of Dell Engineering Services, for an undisclosed amount.
The deal, which is subject to US regulatory approvals which are expected in this quarter, has got the Competition Commission of India's (CCI) nod.
The acquisition will help L&T establish itself as a premier engineering services provider by adding local delivery centres in North America.
Dell Engineering Services provides mechanical design & analysis, embedded engineering, applied engineering and manufacturing consulting across multiple industries and has its clients in North America, especially in the transportation industry. It is headquartered in Peoria, Illinois.
"Product engineering is undergoing structural shifts with evolving technologies, shorter development cycles, regulatory demands and a shortage of skilled talent. This is a tremendous opportunity for us to have a strong local presence in North America where a majority of our clients are based. That along with Dell Engineering Services' strong expertise in embedded and mechanical design and analysis and a history of successful relationships in North America will help us ride the next level of growth," said Keshab Panda, chief executive, L&T Technology Services.
L&T Technology Services offers design and development solutions throughout the entire product development chain across various industries such as industrial products, medical devices, transportation and telecom. The firm employs 9,500 people and is operating in over 30 locations globally. It has six delivery centres.
In June this year, L&T Technology Services acquired 74 per cent stake in Thales Software India Pvt Ltd to grow its avionics business.
Recently L&T said that it is planning to start IPO process for both its technology subsidiaries—L&T Technology Services and L&T Infotech by July 2016.
(Edited by Joby Puthuparampil Johnson)