Larsen & Toubro picks up 15% stake in cloud player E2E Networks

5 Dec 2024 , 09:04 AM

Larsen & Toubro (L&T) said on Wednesday (December 4) that it had finalized the acquisition of a 15% share in E2E Networks Ltd via a preferential allotment. In addition, L&T intends to buy an additional 6% interest from E2E Networks’ promoters, with the secondary transaction likely to be completed on or before May 30, 2025.

Larsen & Toubro agreed to buy a 21% share in E2E Networks Ltd, a cloud services company, for ₹1,407.02 Crore. The move is significant because it would expand L&T’s reach in cloud and AI services, two major growth areas in the technology sector.

On November 5, 2024, the business signed an investment agreement to acquire up to a 21% share in E2E Networks Ltd,” L&T announced. The company plans to spend ₹1,079.27 Crore for a 15% interest through preferential allotment and ₹327.75 Crore for an additional 6% stake via secondary acquisition.

E2E Networks specializes in providing CPU and GPU-based cloud computing platforms to assist its customers run large-scale general and AI workloads, leveraging its partnership with NVIDIA. E2E Networks has formed strategic agreements with major OEMs such as NVIDIA, Intel, AMD, Microsoft, and Dell.

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