Mindtree’s acquisition of Next Digital Business Ratings neutral: Ind-Ra



ANI |
Updated:
May 22, 2021 14:33 First

Mumbai (Maharashtra) [India]May 22 (ANI): The recent announcement of acquisition of Larsen & Toubro’s Next Digital business by Mindtree is credit neutral for the company, India Ratings and Research (Ind-Ra) has said.
The agency believes that Mindtree’s consistently positive free cash flow generation over the past four years and strong cash and equivalents (FY21 end: Rs 2,690 crore) comfortably meet the Rs 198 crore cash consideration for the acquisition. can do.
Ind-Ra said Mindtree’s overall financial credit profile will remain strong even after the transaction is completed by July 31.

In addition, Mindtree intends to harness NXT Digital’s business competencies across various industry segments to bring strong operational efficiencies, digitize the manufacturing and engineering value chain and provide a unique experience to its customers.
The company intends to enhance its cloud-based Internet of Things capabilities and capture opportunities in the Industry 4.0 space with the given acquisition and provide its customers with complete digital transformation solutions.
Ind-Ra has already taken into account the continued expected financial and operational support of L&T from Mindtree. The agency upgraded Mindtree’s rating from AA-plus to AAA in March based on the agency’s expectation of improving its business and financial profile. (ANI)

Leave a Comment