When LTI acquired digital engineering firm Cuelogic Technologies on June 16, it was the technology consulting firm’s first acquisition in 20 months.
“We believe that rapid production is an essential condition for accelerated digitization in all sectors,” said Sanjay Jalona, CEO and Managing Director of LTI, in a press release last week. Cuelogic’s tools and methodologies, he added, will help LTI customers launch products faster, innovate and maintain products optimally.
LTI, which recorded $ 1.7 billion in fiscal 2021, had four acquisitions in 2019. Since then, its management has focused on operations to deal with the COVID-19 pandemic while integrating buybacks and pursuing major transactions. LTI (formerly Larsen & Toubro Infotech) has 35,991 employees, as of March 31, 2021.
A few LTI buyouts have started to bear fruit
LTI acquired Syncordis in December 2017 and Nielsen + Partner in February 2019. These two companies enabled LTI to gain a foothold in the banking and financial services (BFS) sector, in particular in the Temenos ecosystem of corporate clients. Temenos, headquartered in Switzerland, develops enterprise software for BFS customers and is present in the Nordic region of continental Europe.
In the last financial quarter, LTI won a two-year, $ 45 million digital transformation agreement with one of the biggest Islamic banks, thus avoiding competition from the big Indian IT companies. “This victory is an example of how we are leveraging acquisitions to enhance our capabilities and drive growth,” Jalona told equity analysts on May 5, 2021.
“We have acquired two assets and are now the second largest player in the Temenos ecosystem,” reiterated Sudhir Chaturvedi, President (Sales) of LTI on the same conference call. LTI launched a Temenos-based SaaS offering for the Nordic market, in addition to winning major contracts in Europe and Asia-Pacific.
So what does Cuelogic bring to the table for LTI?
Since the start of the pandemic, every industry has had to reinvent its operating models to survive and stay relevant, Jalona noted in the call for results. “The boundaries between B2B and B2C have blurred as several B2B organizations are faced with the need to explore new avenues to market and sell directly to their consumers during the pandemic,” he explained.
Several customers in the manufacturing and consumer packaged goods sector are trying for the first time to reach their customers directly, he said. “Most of these organizations are building or accelerating their B2C capabilities,” Jalona told equity analysts.
With Cuelogic’s client list and a pipeline of 100 products, LTI can deepen its expertise in UX and IA, DevOps and IoT consulting. This will be crucial for LTI’s ability to help its customers digitize their offerings.
Cuelogic was founded in 2008 by Nikhil Ambekar, CEO, Vikrant Labde, CTO, and Neel Vartikar, its director of clientele. “When Vikrant, Neel and I founded Cuelogic, our goal was to deliver fast and reliable product development services to businesses and help them advance their digital transformation,” Ambekar said.
Cuelogic’s 300 employees will be integrated into LTI’s digital practice, the LTI statement said.