L&T to Acquire 21% Stake in E2E Networks for INR 1,407 Cr, Strengthening Cloud & AI Capabilities As part of the deal, L&T will invest INR 1,079.27 crore to acquire a 15% stake in E2E Networks via preferential allotment, with an additional INR 327.75 crore for a 6% stake through secondary acquisition.
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Infrastructure major Larsen & Toubro (L&T) has announced its decision to acquire a 21% stake in E2E Networks Ltd, a leading Indian cloud services company, for INR 1,407.02 crore.
This move, unveiled through a regulatory filing on November 5, 2024, is a strategic step by L&T to strengthen its presence in the rapidly growing cloud and AI services sectors, which are key growth areas within the technology landscape.
As part of the deal, L&T will invest INR 1,079.27 crore to acquire a 15% stake in E2E Networks via preferential allotment, with an additional INR 327.75 crore for a 6% stake through secondary acquisition.
The transaction is expected to be finalised by December 31, 2024. Despite this significant investment, L&T will remain a minority shareholder and will not gain control over E2E Networks, although it will have certain protective rights.
The partnership is viewed as complementary to L&T's approach in the fast-growing domains of AI and cloud services. In addition to the equity investment, L&T and E2E Networks are set to enter into various agreements, including a software license agreement, reseller agreement, and colocation agreement.
These collaborations are seen as a way to drive the adoption of generative AI (GenAI) solutions in India, transforming how organisations utilise accelerated computing on the cloud.
L&T's integration of E2E Networks' cloud and AI cloud platforms with its own expertise in data center management and cloud solutions is expected to empower startups and enterprises across various industries. This collaboration will play a pivotal role in accelerating digital transformation, aiming for a technology-driven and sustainable future in India.
Seema Ambastha, Chief Executive of L&T Data Centre and Cloud Business, said, "Collaborating with E2E Networks allows us to offer our clients seamless, scalable, and secure cloud experiences. By combining our capabilities, we are delivering a cloud ecosystem designed for businesses in India that wants to drive growth, optimise costs, and unlock the full potential of AI and digital transformation."
E2E Networks, a Delhi-based company, has been at the forefront of providing public cloud services to Indian businesses.
"The strategic collaboration between E2E Networks and L&T marks a significant milestone for the future of adoption of domestically built hyperscaler cloud platforms in India. The partnership marks the next step in the journey towards 'Make in India'," E2E Networks Chairman and Managing Director Tarun Dua added.
