LTIMindtree, an established IT services firm from Mumbai, has acquired a 51% majority share in a joint venture (JV) with Global Digital Integrated Solutions Company, an entity under the umbrella of the leading oil corporation Saudi Aramco. This strategic move targets the expansion of IT services across the Middle East and North Africa (MENA) region.
The Indian IT giant, ranking sixth nationally in revenue, has committed to an initial funding of $12.3 million (approximately Rs 101.96 crore) in this venture, as disclosed in a recent regulatory filing.
Following the formalization of a shareholders’ agreement, the newly formed JV will be headquartered in the Kingdom of Saudi Arabia (KSA), with LTIMindtree holding a controlling interest. The remaining 49% of the entity’s share capital will be held by Global Digital.
The JV’s mission is to market and deliver IT services that spearhead digital innovation and the adoption of cutting-edge technologies in both government and private sectors throughout the KSA and the broader MENA region. This territory encompasses a diverse group of countries, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, Iraq, Jordan, Lebanon, Egypt, Libya, Tunisia, Algeria, and Morocco.
The initial authorized capital for the JV is set at 500,000 Saudi Riyals (about Rs 1.10 crore). The governance of the entity will be managed by a board consisting of five members, with LTIMindtree having the authority to appoint three board managers and Global Digital the right to appoint the remaining two. The roles of chairman and vice-chairman will rotate among these members.
The JV aims to establish a regional IT service hub, starting in Saudi Arabia and eventually extending to the MENA region. The focus is on fostering digital transformation within Saudi Arabia, thereby nourishing the digital economy, bridging existing IT gaps, transferring knowledge in IT domains, and cultivating an ecosystem for IT and digital transformation services in the nation.
This collaboration also aligns with Saudi Arabia’s Vision 2030, promoting co-innovation, joint intellectual property creation, and contributing to the rapid digitalization of the country’s infrastructure and services.