Mumbai-based IT services provider LTIMindtree has announced its acquisition of a 51% controlling stake in a newly-formed joint venture with Global Digital Integrated Solutions Company. Global Digital is a wholly owned subsidiary of Saudi Aramco. The joint venture aims to provide information technology services in the Middle East and North Africa (MENA) region. LTIMindtree, the sixth largest IT services firm in India by revenue, will invest an initial amount of $12.3 million in the joint venture. The company aims to accelerate digital transformation and technology adoption in the government and private sector enterprises in Saudi Arabia and the MENA region.
The joint venture company will focus on marketing and providing IT services to promote digital transformation and technology adoption. The MENA region, which comprises several countries including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, Iraq, Jordan, Lebanon, Egypt, Libya, Tunisia, Algeria and Morocco, offers vast opportunities for digital transformation.
The initial authorised capital of the joint venture will be 500,000 Saudi riyals (approximately $133,000). The board of managers for the joint venture will consist of five members, with LTIMindtree having the right to appoint three and Global Digital having the right to appoint two. The joint venture is seen as a strategic move to develop a regional hub of IT services primarily in Saudi Arabia and expand to the wider MENA region in the future. It also presents a financial investment opportunity and a chance to accelerate the digital transformation of Saudi Arabia.
The joint venture is aligned with Saudi Arabia’s Vision 2030, which aims to transform the country’s economy through diversification and innovation. The partnership will focus on co-innovation and joint intellectual property creation, contributing to the growth of the digital economy in Saudi Arabia. LTIMindtree’s expertise in IT services combined with Global Digital’s backing from Saudi Aramco is expected to result in a strong market presence and significant growth in the MENA region.
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