LSEG sells enterprise solutions unit to Lankan firm
View(s):The London Stock Exchange Group (LSEG) decided to sell its Enterprise Solutions Provider (ESP) arm under MillenniumIT to Lanka Century Investments (LCI) to focus more on its capital markets and financial technology businesses, officials said.
“MillenniumIT ESP didn’t gel with our core focus so it was a policy decision to sell it,” a spokesperson for LSEG told the Business Times.
In a strategic move to diversify into the IT solutions domain, LCI with businesses in manufacturing, real estate and strategic investments said in a stock market announcement that it has completed the acquisition of MillenniumIT ESP for Rs. 1.081 billion. It’s a 100 per cent acquisition with management and shareholding control.
Taprobane Holdings owns 80.76 per cent in Lanka Century Investments PLC (LCI).
As part of this acquisition agreement, LCI will also enter into a wider ownership plan with the employees of MillenniumIT ESP giving them an equity stake and enabling them to play a significant role in shaping the company’s future as owner managers, the announcement added. It’s a likely 25 per cent stake in total, according to company sources.
MillenniumIT ESP delivers IT solutions for many industries; the largest of which are in the financial and telecommunications areas. Solutions include providing core infrastructure, information security, business collaboration, near-field communication, business productivity and managed services solutions. The company has a number of global partnerships with firms including Oracle, Microsoft, IBM, Dell, Hitachi and Infosys. It is also a reputed solutions provider for leading Sri Lankan private and public entitles including banks, telecommunication service providers, apparel manufacturers and leading conglomerates.
Industry sources said that there were many bidders for MillenniumIT ESP and all were local. Amongst them David Pieris Motor Company and Just In Time Group had also bid. The negotiations to sell this company started six months ago.
Commenting on the acquisition in the stock market filing Murali Prakash, Group CEO/MD, LCI PLC stated that, “Technology plays a pivotal role across the world and the acquisition of MillenniumIT ESP will accelerate LCI’s international growth strategy. The group will be well positioned to pursue the global opportunities posed by fintech and other enterprise businesses through the creation of a world class brand portfolio with expanded range of products, premier technology and innovation platforms along with the required resources to help pave the way for MillenniumIT.”
The LCI Board of Directors comprise A.G. Weerasinghe (Chairman/Non-Independent Non-Executive Director), Mr.Prakash (Group Managing Director/CEO), Ruwan Sugathadasa (Non-Independent Non-Executive Director), Mangala Boyagoda (Independent Non-Executive Director), and Priyantha Maddumage (Non-Executive Director). During the transition period the MillenniumIT ESP Board of Directors will comprise Sanjeev Gardiner – Group Chairman and CEO of the Galle Face Hotel Group and Chairman Taprobane Holdings PLC, Ajith Devasurendra – Deputy Chairman – Taprobane Holding PLC, Mr. Prakash – Group Managing Director and CEO – Taprobane Holdings PLC and Lanka Century Investments PLC and Ranil Pathirana – Director Hirdaramani Group and Tabrobane Holdings PLC.