HCLTech, an IT giant, has announced its plans to acquire specific assets of Hewlett Packard Enterprise Communications Technology Group (CTG) for $225 million in an all-cash transaction. This deal will see approximately 1,500 staff members and 700 contracted professionals, specializing in telecommunications engineering services, move to HCLTech from various countries including Spain, Italy, India, Japan, China, America and the APAC region.
The acquisition of CTG’s assets is expected to bolster HCL Technologies’ position in the telecom industry by enhancing its engineering services with CSS’s intellectual property, solutions, and skilled workforce. This move will allow HCLTech to strengthen its relationship with leading communications service providers globally, particularly in Europe, Japan, the Americas, and the APAC region.
HCLTech CEO and Managing Director, C Vijayakumar, expressed the company’s commitment to leveraging the top engineering talent and industry-leading intellectual property of HPE’s CTG group through this strategic partnership. The transaction is subject to regulatory approvals and other customary closing conditions, with an expected completion timeframe of six to nine months.
HPE President and CEO, Antonio Neri, emphasized the importance of partnering with HCLTech, recognizing their understanding and appreciation of the valuable heritage, strategy, and future potential of HPE’s CTG business. This collaboration is seen as a strategic move to address the rapidly evolving global telecom market and strengthen HCLTech’s telecom practice.
In conclusion, the acquisition of CTG’s assets by HCLTech signifies a significant step towards enhancing its engineering services and expanding its presence in the telecommunications industry. The partnership between the two companies is aimed at capitalizing on each other’s strengths to better serve global communications service providers and drive innovation in the sector.
Article Source
https://www.siliconindia.com/news/general/hcltech-to-buy-hpe-unit-for-225-million-targets-telecom-market-expansion-nid-229736-cid-1.html
