It was mentioned in a regulatory filing that owning NxT Digital Business would help Mindtree in acquiring more opportunities in the IoT and Industry 4.0 sector due to its cross-sell capabilities, holistic solutions for new prospects and existing clients.

Inscribed in the filing was Mindtree's vision to sway the digital capabilities in this sector to become a 'Go-to business transformation partner' for clients.

The compensation for the contract accounts for Rs 198 crore together with earnouts, subject to adjustments as per the terms of the Business Transfer Agreement. The deal is expected to close by July 31.

L&T is the parent company of Mindtree Ltd with a 61.03% stake in the company.

In a separate filing to the Bombay Stock Exchange(BSE), L&T announced the transfer of its digital transformation business undertaking L&T-NxT (NxT Digital Business), to Mindtree, under the Business Transfer Agreement between L&T and Mindtree.

NxT Digital Business started its journey as a startup within L&T with numerous digital capabilities. The company had earnings of about Rs 37.59 crore in FY21.

Mindtree has a history of performing crucial roles in various applications of -- IoT technology, digitalisation of several operations of L&T where assets were connected and factories were digitised for improving decision making.

NxT Digital Business can boost the proficiency of Mindtree among their clients globally with its advanced technologies -- industrial IoT, artificial intelligence, machine learning, augmented and virtual reality, geospatial and cybersecurity applications.

Debashis Chatterjee, CEO and MD of Mindtree, stated that the acquisition will improve the client experience, placing Mindtree among leading partners of data and analytics to urge on insights and provide transformational services to clients.