With the end of 2017 almost upon us, folks are either gearing up for the new year or winding down from the old one. MillenniumIT is clearly gearing up for a new look for 2018. Why? The company just got acquired by Lanka Century Investments.
The acquisition took place on the 28th of December 2017 with an announcement made to the Colombo Stock Exchange. As per the details of the acquisition, Lanka Century Investments or LCI would acquire full control of the MillenniumIT ESP. In case you were wondering, the MillenniumIT ESP was previously owned by the London Stock Exchange. LCI paid LKR 392.40 per share for a total of 2.75 Million shares. Do the math and you’ll see that LCI paid almost LKR 1.1bn to acquire MillenniumIT ESP.
What is the MillenniumIT ESP?
For those of you not in the know, MillenniumIT ESP is an information system solutions provider, delivering IT solutions for a number of industries; the largest of which are in the financial and telecommunications areas. They have a number of global partnerships with companies such as Oracle, Microsoft, IBM, Dell, Hitachi, and Infosys.
They have also received various excellence, innovation and performance-based awards across various markets for its services around the globe. We too took a stroll through the halls of the MilleniumIT in Malabe in 2014 to see exactly what sorcery was going on.
What is LCI?
Incorporated in 1910, the LCI group is known well in the fields of manufacturing, strategic investments and real estate. With over 3,200 employees, LCI has grown to become a medium-sized, diversified conglomerate.
In 2015, LCI changed its ownership where a group of shareholders became the parents of the group. These shareholders were Navitas Holdings, Galle Face Hotel Group, and Hirdaramani Group, joined by Taprobane Holdings PLC. Before all this, LCI was involved in the manufacturing of textiles, footwear, and porcelain for both the local and export market along with a presence in real estate and other active and passive investments.
What’s next for MillenniumIT ESP?
During the transition period the MillenniumIT ESP Board of Directors will comprise of Sanjeev Gardiner – Group Chairman and Chief Executive Officer, Galle Face Hotel Group and Chairman, Taprobane Holdings PLC, Ajith Devasurendra – Deputy Chairman, Taprobane Holding PLC, Murali Prakash – Group Managing Director and Chief Executive Officer, Taprobane Holdings PLC and Lanka Century Investments PLC, and Ranil Pathirana – Director, Hirdaramani Group and Taprobane Holdings PLC.
But why did LCI acquire the company? The acquisition of MillenniumIT ESP is part of the Group’s Vision 2020 strategy and is also expected to boost the group’s initiatives to revamp themselves to take on tech-based business opportunities.
Under the agreement of the acquisition, even though Lanka Century Investments would have full control of the MillenniumIT ESP, the LSEG (London Stock Exchange Group) will retain full ownership of MillenniumIT Software, the trading technology and software development component of the business.
In addition, LCI will also initiate a broader ownership plan with the employees of MillenniumIT ESP. As such, employees will be given an equity stake. Now a really important question you’re probably having is what exactly LCI is.
The exact plans of LCI are yet to be confirmed but 2018 looks to be a promising one for them especially with all the technology and experience that MilleniumIT ESP has to offer.