L&T Infotech (LTI) and Mindtree have merged into LTIMindtree, effective from Monday, becoming the country’s fifth largest provider of IT services by market capitalisation and sixth largest IT company by revenue.

The record date for share swap has been set for November 24, where all shareholders of Mindtree will be issued shares of LTI in the ratio of 73 shares of LTI for every 100 shares of Mindtree. The parent company, L&T, will hold 68.73 per cent of the merged entity.

L&T Group Chairman AM Naik noted that the combined entity will likely cross $5 billion in revenues by next year.

The merged entity will generate a revenue upwards of $6 billion in congruence with L&T Technology Services (LTTS). The merged entity will commence operating from Monday and Mindtree will be delisted from the exchanges on November 24. According to Naik, the amalgamation scheme was approved by both NCLT benches in Mumbai and Bengaluru.

The cumulative entity will have a combined strength of 90,000 plus employees serving more than 750 global enterprises. The revenue and market breakup between the US and UK will be 70-30 as per the leadership.

According to Naik, the merger will help L&T in achieving its goal of increasing IT-enabled services to 25 per cent of the company’s total business by 2026. The entity, Naik said, is uniquely positioned to combine and scale by competing for larger deals and offers a greater ability to stick together for end-to-end offerings and deeper engagement with hyperscalers to generate significant value.

The management is targeting double digit growth rates for the next five years for the merged entity. Mindtree CEO Debashish Chatterjee will lead the new entity as its MD & CEO.