HCLTech acquires HPE’s Communications Technology Group in $225 Million deal

HCL Technologies (HCLTech) has made a significant move in the telecom industry by announcing a $225 million all-cash deal to acquire assets of Hewlett Packard Enterprise’s Communications Technology Group (CTG). This strategic acquisition is aimed at bolstering HCLTech’s telecom services by integrating top engineering talent and advanced intellectual property from CTG.

The deal, valued at approximately ₹1,874 crore, will see around 1,500 employees and 700 contractors with expertise in telecom engineering services across various countries transition to HCLTech. This includes employees from Spain, Italy, India, Japan, China, the Americas, and the APAC region.

HCLTech’s CEO and Managing Director, C Vijayakumar, expressed excitement about the acquisition, stating that it will strengthen the company’s telecom practice and address the rapidly expanding global telecom market. The deal will also enhance HCLTech’s position in the telecom sector by leveraging CTG’s intellectual property, solutions, and talent at prominent Communications Service Providers (CSPs) worldwide.

The transaction is subject to regulatory approvals and other customary closing conditions, with the finalization expected within six to nine months. HPE President and CEO, Antonio Neri, expressed confidence in the partnership with HCLTech, highlighting the potential for growth and innovation in the telecom sector.

Overall, this acquisition marks a significant step for HCLTech in expanding its global capabilities and strengthening its position in the competitive telecom market. It is expected to bring new opportunities for growth and development in the company’s telecom vertical.