ITC Infotech is set to become India's 11th largest IT services player after acquiring Happiest Minds Technologies from Ashok Soota in a deal worth Rs 1,330 crore.

The combined entity will have a revenue of Rs 7,033 crore and an employee strength of 19,000, with operations across the US, Europe, Middle East, APAC, and India.

Sanjiv Puri, chairman of ITC, described the merger as a strategic move to bring together complementary strengths and deep domain expertise, enabling the company to deliver cutting-edge solutions across geographies.

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"There is very significant complementarity in our business portfolios," said Soota, adding that his team will have a "welcoming new home".

Happiest Minds, a stock market-listed entity, has seen its promoters hold about 7.6% of the combined listed company, with existing public shareholders expected to hold around 19%. The combined entity aims to achieve $1 billion in annual revenue.

The proposed merger will be carried out through a share swap, where shareholders of Happiest Minds will receive 25 shares of ITC Infotech for every 81 shares held.

Following the merger, ITC will hold an expected 73.4% stake in the combined company, with Soota directly owning more than 32% of Happiest Minds and controlling 44% through various promoter entities.

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The deal was initially

ITC Infotech reported Rs 4,718 crore in revenue in FY26, with an adjusted EBITDA margin of 18.5%. Happiest Minds had Rs 2,315 crore in revenue in the same period, with over 6,500 employees.

The merger will bring together Happiest Minds' capabilities in AI, digital engineering, cloud, data, and cybersecurity with ITC Infotech's expertise in enterprise transformation, SAP, product lifecycle management, Industry 4.0, and industry-specific tech solutions.