ITC Infotech to Acquire Happiest Minds in $1 Billion Merger

ITC Infotech is acquiring a 22.1% stake in Happiest Minds Technologies for approximately ₹1,330 crore as the first step toward a full merger. The acquisition will occur in two tranches from founder Ashok Soota and Ashok Soota Medical Research LLP at an average price of ₹395 per share. Following the stake purchase, the companies will execute a share-swap merger where Happiest Minds shareholders receive 25 ITC Infotech shares for every 81 shares held.

The combined entity aims to become India's 11th largest IT services player, targeting annual revenues of $1 billion by FY28. The merged firm will employ over 19,000 people and serve more than 800 customers across 30 countries. Upon completion, ITC Limited is expected to hold a 73.4% stake in the company, with the remaining 26.6% held by Happiest Minds shareholders.

The merger combines Happiest Minds' expertise in AI and digital engineering with ITC Infotech's strengths in SAP and enterprise transformation. As part of the restructuring, Happiest Minds will move its registered office from Bengaluru to Kolkata. The transaction is expected to take 15 months and requires approvals from shareholders, the Competition Commission of India, and the National Company Law Tribunal.

Market reactions were mixed following the announcement; ITC Limited shares rose approximately 3%, while Happiest Minds shares fell over 8% in early trade on September 1.