ConnectM Technology Solutions Inc. (OTC: CNTMD) announced it will divest its India business and logistics land infrastructure asset to Blue Cloud Softech Solutions Ltd. (BSE: 539607) in a $34.2 million share transaction.

Under the agreement, ConnectM will sell its 94.1%-owned subsidiary Global Impx Inc., which holds ConnectM India and its subsidiaries including Geo Impex, in exchange for 160 million shares of Blue Cloud. The total transaction involves 170 million Blue Cloud shares valued at approximately $34.2 million.

ConnectM's portion of the transaction value is $32.2 million, which exceeds the company's market capitalization of $31.9 million as of May 4, 2026, according to the press release. The 160 million shares represent approximately 17.3% of Blue Cloud's post-issue equity share capital.

The divested India operations contributed $2.0 million in annual revenue during fiscal 2025, representing 5.8% of ConnectM's total annual revenue of $35.8 million. The transaction includes Geo Impex, which owns a strategic infrastructure land asset.

"This transaction is intended to crystallize significant value from our India platform and reposition that value into a publicly listed equity interest," said Bhaskar Panigrahi, Chairman and Chief Executive Officer of ConnectM.

Blue Cloud is a Hyderabad-based technology and infrastructure company with over 30 years of experience serving government and enterprise customers. The company operates platforms across digital health, AI diagnostics, advanced sterilization, 5G connectivity, cybersecurity, and enterprise telecom.

The transaction has received approval from Blue Cloud's board and stockholders but remains subject to regulatory, stock exchange, and other customary approvals, including compliance with Indian securities laws and regulations.

ConnectM stated the divestiture will simplify its international operating structure and allow management to focus on U.S. energy technology, AI infrastructure, distributed energy, and capital markets execution.