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HCLTech is acquiring HDPE's communications technology assets to drive innovation and global expansion

IT major HCLTech announced on May 23 plans to acquire an asset of Hewlett Packard Enterprise (HPE) Communications Technology Group (CTG) for $225 million, about ₹1,874 crore, in cash, according to an exchange filing.

About 1,500 employees and 700 employees with experience in telecommunications technology in different countries—such as Spain, Italy, India, Japan, China, the U.S., and the APAC region—will transfer, according to a joint statement to HCLTech as part of the agreement from the companies.

HCLTech said in a regulatory filing that the deal included "the acquisition of certain assets of Communications Technology Group (CSS), a business division of Hewlett Packard Enterprise Co."

The acquisition will strengthen HCL Technologies’ position in the telecom industry by enhancing its technology services and deploying CSS intellectual property, solutions, and talent across leading CSPs in Europe, Japan, US. and across the APAC region, including 20 of the top 30 CSPs globally.

HCLTech CEO and Managing Director C Vijay Kumar said, "With this partnership and our planned collaboration with HPE, we strengthen our telecom practice to cater to the rapidly expanding and changing global telecom market." handles top emerging, project-led technical talent. Along with IP and HPE CTG Group, we add significant capabilities and direct relationships with global CSPs."

The project is subject to regulatory approvals and other customary closing conditions and is expected to be completed within six to nine months.

"By joining HCLTech, our communications technology team becomes part of a strong partner that understands and appreciates the core assets of our CTG business, its strategy, and strengths." The tech market is constantly evolving, driving innovation and shaping the future of industries worldwide.

Technical Capacity Building

HPE's connectivity technology assets include a wide range of products and solutions designed to facilitate connectivity and communication. By integrating these assets, HCLTech aims to enhance its portfolio, providing customers with innovative communication solutions that meet the evolving demands of the digital age.

Expanding the world

The acquisition is expected to significantly enhance HCLTech’s market presence, particularly in communications and technology. By leveraging HPE’s tech assets and established technologies, HCLTech will be able to provide improved services to its existing customers while attracting new customers seeking state-of-the-art connectivity solutions.

Conclusion: HCLTech's acquisition of HPE's communications technology assets is a strategic move that promises further to enhance the company's technological capabilities and market presence. The acquisition not only strengthens the company's capabilities but also provides a new era of technological progress.