L&T Technology Services, a wholly-owned subsidiary of Larsen & Toubro (L&T), has purchased 74% of the equity capital of Thales Software India, the Indian subsidiary of Thales, the global technology leader in aerospace, transportation and defense and security markets. With this transaction, L&T Technology Services will now manage and oversee the management control, operations and delivery of services of the new joint venture.
The joint venture brings together the strategic strengths of both the groups. By retaining 26% equity stake, Thales will help the company develop the latest trends in the avionics industry, one of its core businesses. This collaboration adds to L&T Technology Services' growing competencies by enhancing its expertise in high-end avionic software.
The joint venture capitalises on the existing strong relationship between the two groups, L&T and Thales and ensures a long term partnership in the engineering services domain. Furthermore, the transaction should enable Thales to select this new group as its Indian Offset Partner, resulting in inflow of Offset related revenues in the joint venture.
Larsen & Toubro (L&T) is a technology, engineering, construction and manufacturing company. It is one of the largest and most respected companies in India's private sector.