HCL Technologies announced on Friday the acquisition of selected IBM software products for a total of $ 1.78 billion (over…
HCL Technologies announced on Friday the acquisition of selected IBM software products for a total of $ 1.78 billion (over $ 12,500). This is the largest acquisition in India’s IT services sector, and the 10 th largest in India’s corporate history.
The company expects the transaction to be closed. The transaction is expected to end in mid 2019.  For an all cash transaction, 50% of the transaction must be paid close. The transaction is funded to a large extent by the company’s internal accruals along with $ 300 million (over Rs 2,000 crore) of the debt.
The scope of the software that Noida-based HCL has acquired includes Appscan, BigFix, Unica, Commerce, Portal, Notes & Domino and Connections. The acquired products represent a total marketable market of more than $ 50 billion (Rs 3.53 lakh crore).
The transaction is expected to give HCL access to global customer base with significant revenues from the US, Germany, Japan, France and the UK. The transaction is expected to give HCL access to more than 5,000 major customers across a wide range of industries and geographic markets, along with sales and marketing teams.
“We continue to see great opportunities in the market to improve our Mode-3 (Products and Platforms) offers. The products we acquire are in major emerging market areas such as security, marketing and trading that are strategic segments for HCL. of these products are well regarded by customers and placed in top quadrant by industry analysts. “Says C Vijayakumar, President and CEO, HCL Technologies.
At the end of September quarter, HCL’s cash reserves amounted to USD 21
8.2 million, while debt amounted to $ 388.6 million. Second quarterly debt for the company saw an increase of about $ 355 million from $ 33.3 million during the quarter of June 30, 2018.
“Over the last four years, we have prioritized our investments to develop integrated opportunities in areas such as AI for business, hybrid clouds, cybersecurity, analytics, supply chain and blockchain as well as industry-specific platforms and solutions including healthcare, industrial IOT and financial services. These are among the emerging high-quality segments in the IT industry. As a result, IBM is a leader in the segments today, says John Kelly, IBM vice president, cognitive solutions and research.