Ahmedabad-based IT player Dev Information Technology Limited on Tuesday said that LT1, a wholly-owned stepdown subsidiary of US-headquartered IT company Lilikoi Holdings Inc, has acquired controlling stake of 51 per cent in the company.
According to sources, the all-cash deal size is estimated at about ₹300 crore. The promoters of Dev IT understood to have diluted their holdings from 68 per cent to 23 per cent besides the preferential issuance of shares leading to 51 per cent for the LT1.
“Post acquisition, there will be no change in management or the name of the company. LT1 will have one seat on the Board of Dev IT. This is not a typical M&A deal, but a strategic collaboration between Lilikoi and Dev IT. Following this, Dev IT will continue to operate in its existing areas, besides having access to the areas such as IoT and AI wireless ecosystem where Lilikoi has a strong presence,” Jaimin Shah, one of the four promoters of Dev IT told businessline.
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On BSE, the share price of Dev IT hit the upper circuit with 5 per cent gain at ₹152.10 on Tuesday.
Founded in 1997, Dev IT has a presence in Canada. The small-cap company is a technology solutions provider by leveraging cloud, automation, and data technologies.
“The acquisition will enable access for Dev IT in the markets such as North America and Australia,” Shah said.
Lilikoi caters to clients ranging from the US government and the fintech sector in the US. The company is in the process of creating an ecosystem to design, engineer, manufacture, and support their IoT devices, edge devices, base-stations, repeaters, and seamlessly integrate various technologies and solutions.
Pranav Pandya, chairman, Dev IT Limited, said, “We expect that this development and systemic changes stemming from this alliance shall help us in improving our revenue mix and profitability as we grow.”
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Sanjay Patel, Founder and CEO of Lilikoi, said, “In DEV IT, we find a perfect blend of technical skills with service capabilities to deploy our solutions in North America and other developed geographies.”
Vivro Financial Services Private Limited acted as the advisor and merchant banker, while Dhinal Shah Associates is the legal and tax advisor to the transaction.
