ITC Infotech will acquire a stake of up to 22.1% [1] in Happiest Minds Technologies as part of a strategic merger.
The deal aims to combine the two firms into a larger, AI-first IT services entity. This move signals a shift toward consolidating specialized artificial intelligence capabilities within the Indian tech sector to better compete for global contracts.
Promoters of Happiest Minds, including founder Ashok Soota and Ashok Soota Medical Research LLP, are selling the stake to ITC Infotech, which is the IT services arm of ITC Limited [1]. The transaction is valued at approximately Rs 1,329.72 crore [1], though some reports round this figure to Rs 1,330 crore [2]. In U.S. dollars, the transaction is valued at $140 million [3].
To fund the acquisition, ITC Infotech will utilize a rights issue [4]. The purchase will be executed in stages. The first tranche of shares is priced at Rs 390 per share [7], while the second tranche is set at Rs 400 per share [7].
Happiest Minds is headquartered in Bengaluru, India [1]. The merger is designed to leverage the existing infrastructure of ITC Infotech while integrating the AI-centric approach championed by Soota [4].
While the exact percentage of the stake varies slightly between reports, ranging from 22% [2] to 22.1% [1], the primary objective remains the creation of a scaled services provider. The companies have not detailed the specific timeline for the full integration of operations.
“The deal aims to combine the two firms into a larger, AI-first IT services entity.”
This merger reflects a broader trend in the Indian IT services market where traditional firms are acquiring 'AI-first' boutiques to accelerate their digital transformation. By integrating Happiest Minds, ITC Infotech gains immediate access to specialized AI talent and frameworks, reducing the time required to build these capabilities organically while increasing its scale to compete with larger global systems integrators.
