The acquisition will be completed in two parts: a 15% stake via preferential allotment and an additional 6% through a secondary acquisition. L&T will invest ₹1,079.27 crore for a 15% stake through preferential allotment and ₹327.75 crore for an additional 6% stake through a secondary acquisition.
Post-acquisition, L&T will have the right to nominate up to two directors on E2E Networks' board, ensuring they have a say in the company's strategic direction.
Alongside the acquisition, L&T will enter into a software license agreement, reseller agreement, and colocation agreement with E2E Networks.
This partnership is expected to accelerate digital transformation across various industries in India by integrating E2E Networks' cloud and Al cloud platform with L&T's expertise in data center management and cloud solutions.
E2E Networks' shares surged by 5% following the announcement, reflecting positive market sentiment about the deal.
Post-acquisition, E2E Networks' promoters, Tarun Dua and Srishti Baweja, will still hold a significant stake in the company.
This collaboration is expected to foster a technology-driven, sustainable future for India by promoting the adoption of GenAI solutions and enhancing cloud services.
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