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regular-article-logo Sunday, 23 June 2024

HCL Tech buys telecom assets of Hewlett Packard Enterprise for $225 million

As part of this agreement, approximately 1,500 employees and 700 contractors with experience of engineering services for the telecom industry in various countries — including Spain, Italy, India, Japan, China, Americas and APAC region — will be transferred to HCLTech, the companies said in a note

PTI New Delhi Published 24.05.24, 09:07 AM
Representational image

Representational image File image

IT company HCL Tech on Thursday said it will acquire certain assets of Hewlett Packard Enterprise's Communications Technology Group (CTG) for $225 million, about 1,874 crore, in an all-cash deal.

As part of this agreement, approximately 1,500 employees and 700 contractors with experience of engineering services for the telecom industry in various countries — including Spain, Italy, India, Japan, China, Americas and APAC region — will be transferred to HCLTech, the companies said in a note.

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HCL Tech in a regulatory filing mentioned that the deal is for "purchase of certain assets (CSS) of Communications Technology Group, a business division of Hewlett Packard Enterprise Company. CSS delivers engineering services to leading global Communications Service Providers (CSPs) leveraging its intellectual properties in a global delivery model".

The deal will strengthen HCL Technologies' presence in the telecom vertical by expanding its engineering services and leveraging CSS' IP, solutions and talent at leading CSPs, including 20 of the top-30 CSPs globally.

"With this transaction and our planned strategic partnership with HPE, we are strengthening our telecom practice to address the rapidly expanding global telecom market. With the incoming top engineering talent and industry-leading IP from the CTG group of HPE, we are adding significant capabilities and direct relationships with global CSPs," HCL Tech CEO and MD C Vijayakumar said.

This transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in six to nine months.

"In joining HCLTech, our Communications Technology Group will become part of a strong partner that understands and appreciates the significant heritage of our CTG business, its strategy and its potential for the future," HPE president and CEO Antonio Neri said.

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