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L&T Technology Services has signed a joint venture with aerospace and defence equipment manufacturer Thales and acquired its software business in India. The acquisition will help L&T to grow the avionics business, the company announced today.
Under the deal L&T Technology Services, a subsidiary of L&T, has purchased 74% in Thales Software India Pvt Ltd's and balance will be held by Thales. The companies did not disclose deal size.
Currently Thales software unit in India executes software projects for the group's various businesses.
"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. 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,'' L&T announced in a press statement.
