Anindita Nayak
Bhubaneswar, June 13, 2024
IT major HCLTech continued its upward trend in the Indian stock market as the company’s shares were trading upward for the second consecutive day on the renewal of a large deal with German lender, apoBank.
The company has announced an extension of its contract with Deutsche Apotheker- und Ärztebank eG (apoBank), Germany’s largest cooperative primary bank this week.
In an exchange filing, HCLTech said the deal is valued at $278 million (approximately Rs 2,300 crore) and is spread over 7.5 years.
apoBank and HCLTech began their partnership in 2021, primarily focusing on application services. However, the new agreement marks a substantial expansion in their relationship, the company has said in a statement.
“The new contract will result in a significant expansion in the relationship. We look forward to working with apoBank to help them serve their customers by leveraging our comprehensive portfolio of managed infrastructure and cloud services and our longstanding experience with Avaloq,” said Sudip Lahiri, Executive Vice President and Head of Financial Services, Europe at HCLTech.
Avaloq, a company based in Switzerland, specializes in creating and providing software called the Avaloq Banking Suite, which meets core banking requirements. In 2022, HCLTech acquired Confinale, a well-known Swiss company that excels in digital banking and wealth management consulting. Confinale also worked as an implementation partner for Avaloq Solutions.
“In addition to world-class capabilities in IT infrastructure and cloud-managed services, HCLTech has extensive Avaloq expertise and a deep understanding of apoBank. In this respect, it was a logical step to consolidate the IT services with HCLTech,” said Thomas Runge, COO and Member of the Executive Board, apoBank.
On Thursday, the Nifty IT index was trading 0.89% up at 34,853 at 12:50 PM, marking a second day of gain for the index. HCL Tech was trading 0.33% up at Rs 1,443.50 on the NSE. Among midcaps, Coforge was trading 2.19% higher at Rs 5,290 per share.
