DBT Bureau
Bengaluru, 24 May
IT services firm, HCL Tech on Thursday said it will acquire Communications Technology Group (CTG) assets from Hewlett Packard Enterprise (HPE) for $225 million to strengthen its engineering services offerings. This acquisition is likely to bolster HCL Tech’s services to global Communication Services Providers (CSPs) or telecom operators.
As part of this agreement, around 2,200 employees of CTG will be rebadged. While around 1,500 employees of CTG with telecom industry experience will be absorbed by HCL Tech, about 700 contractors will also transfer to HCLTech in various countries — including Spain, Italy, India, Japan and China — to service clients globally, the company said in an exchange filing.
“HCL Tech will get top engineering and R&D talent and IP from the CTG group of HPE, which it said will help it “significant” capabilities and direct relationships with global CSPs that include 20 of the Top 30, accelerating its growth strategy in the global telecom industry,” the company said.
HCL Tech will gain a portfolio of service offerings that includes IP, solutions and systems integration around Business Support Systems (BSS), network applications, service cloudification and data intelligence among others.
These capabilities will also complement HCL Tech’s existing highly digitized services with artificial intelligence (AI), Internet of Things (IoT), and data-driven models; enhanced efficiency; frictionless integration; and an end-to-end partner ecosystem, the company said.
“With this transaction and our planned strategic partnership with HPE, we are strengthening our telecom practice to address the rapidly expanding and transforming global telecom market,” said C Vijayakumar, CEO of HCL Tech.
Commenting on the development, Antonio Neri, Chief Executive Officer of Hewlett Packard Enterprise said, “In joining HCL Tech, our Communications Technology Group will become part of a strong partner that understands and appreciates the significant heritage of our CTG business, its strategy and its potential for the future.”
