The proposed merger between ITC Infotech and Happiest Minds Technologies will not result in layoffs, according to the management of the Bengaluru-headquartered IT services firm.
Speaking on Tuesday, senior executives said the deal has been structured around acquiring talent and strengthening capabilities in high-growth technology areas, not reducing costs or rationalising the workforce.
The assurance comes amid concerns that large-scale technology mergers often trigger workforce restructuring as companies seek operational efficiencies.
According to media reports, ITC's leadership has specifically sought continuity across the Happiest Minds workforce, citing the company's expertise in digital technologies.
"One of the requests and stipulations from ITC was that each and every Happiest Mind continues. One of the primary reasons for making this acquisition is the deep capabilities in digital data, cybersecurity and AI. They don't want to lose this capability," Joseph Anantharaju, CEO of Happiest Minds, said.
Focus remains on capability expansion
The management positioned the transaction as a strategic move to strengthen technology capabilities rather than a consolidation exercise.
Anantharaju said the value of the deal lies in the specialised skills and expertise developed by Happiest Minds, particularly across:
- Digital technologies
- Data capabilities
- Cybersecurity
- Artificial intelligence
Management also noted that both organisations are currently operating at high utilisation levels, reducing the likelihood of workforce overlap concerns that often accompany mergers.
Following the integration, the combined entity is expected to have a workforce of approximately 19,000 employees.
The comments suggest that talent retention will remain a priority as the companies move towards integration.
Soota to redirect stake sale proceeds into healthcare
The transaction will also mark a significant shift for Ashok Soota, founder and promoter of Happiest Minds.
According to Anantharaju, Soota plans to channel part of the proceeds from the stake sale into healthcare and medical research initiatives.
The 83-year-old entrepreneur is selling a 22.1% stake to ITC as part of the broader transaction. Management said the proceeds will be used to support:
- SKAN, Soota's not-for-profit medical research trust
- Happiest Health, his healthcare venture
According to the company, each initiative requires an investment of approximately ₹350 crore to ₹400 crore.
Market reacts to merger structure
While management sought to reassure employees about workforce continuity, investor sentiment appeared less positive.
Happiest Minds Technologies' stock declined after details of the transaction emerged, with the market reacting to ITC's decision to pursue a reverse merger structure.
The approach does not trigger an open offer, a factor that weighed on investor sentiment following the announcement.
The proposed combination represents one of the more significant developments in India's technology services sector, bringing together ITC Infotech's enterprise technology capabilities and Happiest Minds' strengths in digital transformation, AI and cybersecurity.
Integration plans under scrutiny
The coming months are likely to bring greater clarity on integration plans, leadership structures and operational alignment between the two companies.
For now, management's message remains clear: the merger is intended to preserve and scale capabilities rather than reduce headcount. With a combined workforce of 19,000 employees and a stated focus on retaining talent, the transaction is being positioned as a growth-driven technology combination rather than a cost-rationalisation exercise.