To acquire Spectrum Infotech

Larsen & Toubro (L&T) has signed a memorandum of understanding to acquire Bangalore-based Spectrum Infotech Pvt Ltd for an undisclosed amount.

Spectrum is a defence electronics and aerospace research and development company. This will be the first acquisition of L&T in the area of defences services.

L&T will absorb all 50 scientists of Spectrum.

The acquisition is in line with the company's strategy to strenghten its leadership in defence electronics and avionics. The acquisition will be managed by L&T's newly launched Strategic Electronics Centre, Bangalore.

"The 50 people absorbed from Spectrum is significant for us. These scientists and engineers will significantly strengthen SEC's inhouse R&D team," said YM Deosthalee, CFO, L&T.

Spectrum's expertise complements L&T's strengths in defence electronics and avionics with a focus on entire systems and weapon platforms.

L&T stock closed at Rs 2,200.95 on the Bombay Stock Exchange today, down 1.13 per cent compared with yesterday's closing price of Rs 2,226.10.

Founded in 1995, Spectrum Infotech focuses on technology and product development in embedded computation, control and signal processing, for both hardware and software. It is currently engaged in design and development of prototype sub-systems and units.

The client base covers defence R&D laboratories and defence public sector units including Aeronautical Development Agency, Combat Vehicles R&D Establishment, Instrument R&D Establishment, Research Centre Imarat, Naval Science & Technological Laboratory, Defence Bio-Engineering and Electro Medical Laboratory, Bharat Electronics Ltd and Hindustan Aeronautics Ltd.