L&T Infotech and Mindtree announced a mega-merger plan on Friday to establish an efficient and scaled-up IT services company with combined turnover exceeding USD 3.5 billion, according to a statement. The merged  entity will be known as 'LTIMindtree,' the statement adds.

In an all-share deal, L&T Infotech will offer 73 shares for every 100 shares of Mindtree. "Upon the scheme becoming effective, all Mindtree shareholders will be awarded 73 shares of LTI for every 100 shares of Mindtree," according to the announcement.

LTI's newly issued shares will be traded on the NSE and BSE. After the transaction, Larsen & Toubro Limited will own 68.73 percent of LTI. Shareholder and regulatory approvals are required for the acquisition.

"The highly complementary businesses of LTI and Mindtree will make this integration a 'win-win' proposition for our customers, investors, shareholders, and workers," stated LTI Chairman AM Naik. Naik explained the merger to media, saying that DC Chatterjee will lead the amalgamated organisation. Sanjay Jalona, the CEO of LTI, has resigned due to personal reasons. "Given recent market developments (e.g., importance of large deals, preference for end-to-end products) favouring at-scale players, the two firms have agreed that the moment is right to combine their expertise to better serve clients,"  the statement said.

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