L&T Technology to acquire Orchestra Technology for USD 25 million

L&T Technology Services Limited (LTTS) is set to acquire Orchestra Technology, Inc. which is a specialist technology partner for the wireless and mobile eco-systems, headquartered in Dallas (Texas).

Orchestra Technology delivers high-value engineering services and solutions for the telecom industry in the areas of network engineering and operations (for 5G, 10T, RAN and CORE networks) as well as enterprise mobility. It generated revenue of USD 15.1 million in CY19.

The cost of acquisition is USD 25 million (Rs 187 crore), which is to be paid in tranches. USD 11 million has to be paid upfront and the remaining USD 14 million needs to be paid in the form of earn-outs and retention pay, in a span of over three years. The acquisition process is projected to get completed by October 2020.

This acquisition will help LTTS to strengthen its footprint in the telecom original equipment manufacturer (OEM) and service provider space.

Orchestra's capability and expertise will form a key differentiator as 5G rollouts take off across geographies and will enable LTTS to expand its services and provide valuable assets to end customers. Orchestra will help bolster LTTS investments as part of open network forums-ONF and TIP across key elements of 5G like ORAN, private networks, narrowband internet of things (NBIoT).

In the March quarter of FY20, LTTS was successful in closing nine deal wins across various sectors, which include one deal with TCV of USD 30 million-plus, and three deals of TCV in the range of USD 10 million to USD 20 million.

On Friday, the stock of LTTS opened gap-down 3.3 per cent at Rs 1,392.15 from its previous close of Rs 1,439.20 on BSE.