HCLTech Ltd, an IT services company, announced its acquisition of the assets of Communications Technology Group (CTG) from Hewlett Packard Enterprise (HPE) for $225 million in an all-cash deal. Approximately 1,500 CTG employees specializing in the telecommunications industry will join HCLTech in countries such as Spain, Italy, India, Japan, and China to serve clients globally. This acquisition will provide HCLTech with intellectual property, R&D capabilities, engineering talent, and customer relationships with leading global communications service providers.
The agreement will enhance HCLTech’s presence in the telecom sector by expanding its engineering services and utilizing CSS’ intellectual property, solutions, and talent with top CSPs worldwide. HPE will retain the operations support systems (OSS) segment of its former CTG business, focusing on areas such as 5G public SDM and private networks. The transaction is expected to strengthen HCLTech’s telecommunications practice and facilitate growth in the global telecommunications market.
HCLTech CEO and Managing Director C Vijayakumar expressed enthusiasm about the transaction, emphasizing the added capabilities and relationships with global CSPs resulting from the acquisition. The deal is subject to regulatory approvals and other customary closing conditions, with a projected timeline of 6 to 9 months for completion.
HPE President and CEO, Antonio Neri, noted that joining HCLTech will position the Communications Technology Group for future success. Following the announcement, shares of HCL Technologies Ltd closed at ₹1,353.40 on the BSE, marking a 0.77% increase.
Overall, the acquisition of CTG assets from HPE underscores HCLTech’s commitment to bolstering its telecommunications practice and expanding its global reach in the industry. The deal signifies a strategic move to capitalize on the rapidly evolving telecommunications market and enhance the company’s capabilities and offerings to meet the needs of global CSPs.
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https://www.cnbctv18.com/business/companies/hcltech-to-buy-hpe-communications-technology-group-assets-for-225-million-19416798.htm/
