L&T jumps into the race to buyout Hexaware

Posted By: Religare
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L&T jumps into the race to buyout Hexaware
Nobody wants to miss an opportunity to buy India's largest mid-sized IT powerhouse, Hexaware Technologies. There are three global majors vying to buy the company out and then there is Larsen and Toubro (L&T).

The Indian conglomerate, L&T, will do everything it can to succeed after it failed to acquire Satyam Computer services and Patni Computer systems.

The top officials of both the company met recently which added fuel to the fiery speculations of L&T InfoTech, technology arm of the engineering giant L&T Ltd., looking to buyout Hexaware.

Earlier, Hexaware, together with its equity partners had sought help of investment banks Morgan Stanley and Credit Suisse to advise them on selling a majority stake in the company.

L&T is looking to fight it out but the only cause of worry is the rumors regarding Hexaware's high valuation which could then deter the bidders.

The promoters are expecting the company to be valued at USD 700-800 million which is 15 times calendar year 2011 earnings before interest, taxes, depreciation and amortization, and around two-and-half times sales.

Dion Global Solutions Ltd

Read more about: larsen, hexaware
Story first published: Wednesday, March 7, 2012, 23:35 [IST]
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