IT services company HCLTech has announced its acquisition of certain assets of Hewlett Packard Enterprise’s Communications Technology Group (CTG). This acquisition will provide HCLTech with intellectual property, engineering and R&D talent, and relationships with global communications service providers (CSPs). The acquired services include solutions and system integration in areas such as business support systems, network applications, service cloud, and data intelligence, which will complement HCLTech’s existing digital services. Approximately 1,500 CTG employees with telecommunications industry experience will join HCLTech in various countries to serve clients worldwide.
C Vijayakumar, CEO of HCLTech, stated that this acquisition will bring in engineering talent and industry-leading intellectual property, enhancing HCLTech’s capabilities and relationships with global CSPs, and accelerating their growth strategy in the telecommunications industry. He also expressed excitement about a strategic partnership with HPE in the future, focusing on innovation, joint propositions, and transformational services. The transaction is subject to regulatory approvals and other closing conditions, with an expected completion timeline of six to nine months.
In terms of financial performance, HCLTech reported strong growth in its industry verticals for the fourth quarter, with telecom, media, publishing, and financial services leading the way. Financial services saw a 12.1% year-over-year growth in constant currencies for the full year, while the Telecommunications, Media, Publishing, and Entertainment vertical posted a significant 39.2% growth year-over-year in the quarter.
Overall, this acquisition of CTG assets from HPE will bolster HCLTech’s position in the telecommunications industry and expand its capabilities and client base globally. This strategic move aligns with HCLTech’s growth strategy and focus on digital services, while also setting the stage for potential future collaborations with HPE.
The transaction marks a significant milestone for HCLTech and reflects its commitment to enhancing its offerings and market presence in the rapidly evolving telecommunications sector. With a strong emphasis on innovation, talent acquisition, and industry-leading intellectual property, HCLTech is well-positioned to capitalize on the growing demand for digital solutions in the telecommunications industry.
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https://www.techcircle.in/2024/05/24/hcltech-to-purchase-certain-assets-of-hpe-s-communication-technology-group