07 March 2024 – Mumbai-based IT services provider LTIMindtree has acquired a controlling 51% stake in a newly formed joint venture (JV) with Global Digital Integrated Solutions Company, a subsidiary of Saudi Aramco. The collaboration aims to deliver information technology services in the Middle East and North Africa (MENA) region. LTIMindtree, ranked as India’s sixth-largest IT services firm, will invest $12.3 million to drive digital transformation in government and private sector enterprises in the Kingdom of Saudi Arabia (KSA) and MENA.
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Background:
The JV, formed under a shareholders’ agreement, positions Global Digital with a 49% stake. The scope of the venture is to market and provide IT services, fostering digital transformation and next-generation technology adoption in the KSA and MENA.
- The initial investment of $12.3 million by LTIMindtree for a 51% controlling stake.
- The JV aims to become a regional IT services hub, focusing initially on Saudi Arabia and later expanding across the MENA region.
- The authorized capital for the JV is set at 500,000 Saudi riyals.
- The venture aligns with Saudi Arabia’s 2030 Vision, emphasizing co-innovation and joint intellectual property creation.
The strategic partnership between LTIMindtree and Global Digital aims to play a pivotal role in driving digital economy growth, addressing IT knowledge gaps, and nurturing a robust IT and digital transformation services ecosystem in Saudi Arabia and the broader MENA region.
Conclusion:
As LTIMindtree invests in this significant joint venture, it signals a commitment to advancing digital capabilities in Saudi Arabia. It contributes to realizing the region’s digital ambitions outlined in the Saudi 2030 Vision. The collaboration holds the potential to become a cornerstone for IT services in the MENA region, fostering innovation and transformative growth.
