LTM Acquires Randstad's European and Australian Operations in First Major Acquisition Following Merger
LTM Ltd Acquires Randstad's European and Australian Subsidiaries for $186 Million
LTM Ltd, the Bengaluru-based IT services company, has made its first acquisition since its inception after the merger of parent Larsen & Toubro's two information technology (IT) services companies. The company is acquiring Randstad's technology and consulting business in Europe and Australia for $186 million.
The acquisition represents €469 million (or about $500 million) in annual revenue, and will significantly boost LTM's revenue. The company's incremental revenue last year was $271 million, and with this acquisition, LTM's revenue would total about $5.2 billion. This makes for almost double LTM's incremental revenue, and is a major milestone for the company.
| Company | Revenue (Annual) |
|---|---|
| LTM Ltd (Post-Acquisition) | $5.2 billion |
| Tech Mahindra | $6.39 billion (Last Fiscal) |
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The acquisition is expected to widen LTM's footprint across aerospace & defence, automotive, utilities, and BFS, which together make up more than three-fifths of the company's business. LTM's CEO, Venu Lambu, previously headed Randstad for two years until January 2025, and has now taken over as CEO of LTM.
The acquisition is expected to be completed in the July-September 2026 period. LTM will manage Randstad's global capability centre operations for five years and some of its employees are expected to transition to LTM. The company expects the acquisition to increase its Europe exposure beyond 20% from its current level of around 15%.
The acquisition comes after LTM advanced its goal to double revenue to almost $10 billion by FY31 on the back of large deals and AI-driven, high-value services. The company has also set an ambitious goal for its new five-year plan, with parent L&T expecting Lambu to deliver significant growth.
Other major acquisitions in the IT services space include Infosys Ltd's plans to buy US tech services companies Optimum Healthcare IT and Stratus for a total of $560 million, and Wipro Ltd's spending of $446 million on its Olam and AlphaNet acquisitions.
Investor Takeaway
LTM's acquisition of Randstad's European and Australian operations may lead to increased revenue and competitiveness in the IT services market.
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