Larsen & Toubro (L&T), a prominent infrastructure company, announced on Tuesday its decision to acquire a 21% stake in E2E Networks Ltd, a cloud services provider, for ₹1,407.02 crore. This strategic investment aims to expand L&T’s presence in the rapidly growing sectors of cloud computing and artificial intelligence (AI).
According to a regulatory filing, L&T has signed an investment agreement on November 5, 2024, for the stake acquisition. The company will invest ₹1,079.27 crore for a 15% stake through preferential allotment and ₹327.75 crore for an additional 6% through a secondary acquisition.
The completion of this stake purchase is expected by December 31. L&T will remain a minority shareholder in E2E Networks and will not gain control over the company, although it will hold certain protective rights.
The acquisition aligns with L&T’s strategy to enhance its capabilities in AI and cloud services. Additionally, the company plans to enter into a software license agreement, a reseller agreement, and a colocation agreement with E2E Networks as part of this transaction.
Based in Delhi, E2E Networks Ltd specializes in providing public cloud services to a variety of clients. Larsen & Toubro (L&T) is a leading Indian multinational conglomerate with a robust presence in various sectors, including infrastructure, engineering, construction, manufacturing, and technology.
Established in 1938, L&T has played a pivotal role in shaping India’s industrial landscape, delivering large-scale projects across sectors such as power, transportation, defense, and urban development. The company is recognized for its commitment to innovation and sustainability, leveraging advanced technologies to enhance operational efficiency and reduce environmental impact. With a diversified portfolio and a strong emphasis on research and development, L&T continues to drive growth and contribute to the nation’s infrastructure development.
E2E Networks Ltd is an Indian cloud services provider based in Delhi, specializing in delivering public cloud solutions to businesses of various sizes. Founded with the vision of making cloud computing accessible and affordable, E2E Networks offers a range of services, including cloud hosting, virtual servers, and managed services, enabling customers to leverage the flexibility and scalability of the cloud.
The company focuses on providing robust and secure cloud infrastructure tailored to meet the unique needs of its clients. With a commitment to innovation and customer-centric solutions, E2E Networks is positioned as a key player in India’s burgeoning cloud services market, catering to the increasing demand for digital transformation and technology-driven solutions.
