LTIMindtree it is setting up a joint venture (JV) with Saudi Aramco’s IT services arm Global Digital with an initial investment of $12.3 million, the Indian IT services firm said on March 6. The JV will market and provide information technology services in Saudi Arabia and the Middle East and North Africa (MENA) region.
This JV comes at a time when key markets such as North America continue to slowdown for IT services sector as customers tighten tech budgets amid macroeconomic headwinds. North America accounts for over 70 percent of LTIMindtree's business.
“The scope of the joint venture company will be to market and provide information technology services to accelerate digital transformation and new next generation technology adoption in government and private sector enterprises in the KSA as well as in the MENA region,” LTIMindtree said in a regulatory filing.
LTIMindtree will be hold a 51 percent stake in the company and make an initial investment of $12.3 million. Global Digital will hold the remaining 49 percent stake. The authorised capital of the joint venture company
shall be Saudi Riyals five hundred thousand (SAR 500,000).
Terms of the JV
According to the company, the proposed JV will be an engine of digital transformation in Saudi Arabia and enable growth of the digital economy, addressing gaps, transferring IT domains knowledge, and developing IT and digital transformation services eco-system in Saudi Arabia.
“In addition, the proposed joint venture company provides an attractive financial investment and the opportunity for the acceleration of the digital transformation of Saudi Arabia with focus on co-innovation and joint IP creation, in line with Saudi Arabia’s 2030 Vision,” it added.
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