L&T Technology Services (LTTS), a subsidiary of construction major Larsen & Toubro, has entered into an agreement to acquire the Smart World & Communication (SWC) business from the parent, in an Rs 800-crore deal.

SWC is a connected intelligence solution provider with presence in communications, safe and smart solutions and cybersecurity. The company will fund the transaction, which is expected to close within three months, using its cash reserves, LTTS said in a regulatory update.

It has an employee base of more than 700 engineers from diversified technology domains, and recorded had posted revenue of Rs 1,098 crore in FY22.

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“SWC has created a niche for itself in the communications and smart spaces domain across developing markets. By combining with a global engineering services player like LTTS, its offerings across next-gen networks, smart spaces, and cybersecurity will help unlock new synergies across the technology spectrum,” L&T CEO & managing director SN Subrahmanyan said.

The move would enable LTTS to combine synergies and take offerings in next generation communications, sustainable spaces and cybersecurity to the global market, it added.

“The acquisition of SWC is a progression of LTTS’ six big bets strategy with a direct bearing on 5G, digital products and artificial intelligence and sustainability. SWC’s capabilities will enhance LTTS’ differentiation in the field of next-gen communications with cutting edge solutions around 5G networks, sustainable spaces, along with a full stack of cybersecurity solutions to our global clientele,” Amit Chadha, CEO & MD, LTTS said. “The combined team of LTTS and SWC will take these offerings incubated in India to the world, while bringing best practices to Indian and global customers,” he added.

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With 5G expected to have a global impact of $1.3 trillion by 2030, the companies together are in a “stronger position” to win and execute large scale transformational programmes in India and globally, it said.

Together, LTTS and SWC will address a larger market of $390 billion globally for sustainable spaces, and the joint team of LTTS and SWC would provide Security Operating Centres, full lifecycle threat management and address the demands of the projected $376-billion cybersecurity market, it added.