LTM Offers To Buy Randstad’s €469 Million Tech Consulting Business 

LTM has issued an offer to acquire Randstad’s Technology and Consulting Services business in Europe and Australia, as the Larsen & Toubro Group company looks to expand its AI-led technology services, digital engineering and regional delivery capabilities.

The proposed acquisition covers Randstad’s business in France, Germany, Belgium, Luxembourg and Australia, which generates more than $500 million, or €469 million, in annual revenue, LTM said in a press release. According to Nuvama Institutional Equities, the transaction is valued at an enterprise value of up to €160 million. 

The acquisition is proposed to be completed through LTM’s wholly owned subsidiary, LTIMindtree UK Ltd, subject to regulatory approvals and other closing conditions.

LTM said the deal will expand its presence in key markets and verticals, including aerospace and defence, automotive, utilities and BFS. It will also add local domain expertise in digital engineering, cybersecurity and IoT, supported by nearshore delivery centres in Romania and Portugal.

“The proposed agreement is aligned with our five-year strategy to build a more resilient, diversified, balanced portfolio,” said Venu Lambu, CEO and MD of LTM. “By combining our global AI-centric capabilities with local context and industry depth, this acquisition would strengthen our ability to deliver compliant, domain-driven AI services and sovereign solutions in markets that are strategically important to us.”

The proposed transaction is part of a wider 360-degree partnership with Randstad. This includes a five-year IT services partnership to support AI-enabled transformation at Randstad’s India Global Capability Center and a strategic talent managed service provider arrangement to support LTM’s expanding global workforce.

Randstad CEO Sander van ‘t Noordende said the deal is part of Randstad’s “Partner For Talent” strategy and will help the company streamline its portfolio.

“By partnering with LTM, we would ensure our clients continue to receive world-class services while we streamline our portfolio to invest in growth segments and digital marketplaces that offer the most scale and value,” he said.

According to a Nuvama Institutional Equities report, the acquired business has around 2,900 onsite and nearshore billable employees and delivery centres in Romania and Portugal. The brokerage said the deal values the business at about 0.3 times enterprise value to sales.

Nuvama said the acquisition addresses a “white space” in LTM’s portfolio by strengthening its presence in Europe and Australia. It also said the deal could expand LTM’s Europe revenues to around $1.1 billion, while giving it access to marquee customers in aerospace and defence, automotive, utilities and BFS.

The brokerage, however, flagged that the acquired business has seen a declining revenue profile. It added that the seller has rationalised several smaller accounts as part of the divestment process, which could support smoother transition and integration.