HCLTech to purchase certain assets of HPE’s Communication Technology Group

IT services company HCLTech has announced that it will be acquiring certain assets of Hewlett Packard Enterprise’s (HPE) Communications Technology Group (CTG). Under this purchase, HCLTech will obtain intellectual property (IP), Engineering and R&D talent and client relationships with top global Communication Service Providers (CSPs).

Acquired services such as solutions and systems integration around Business Support Systems (BSS), network applications, service cloudification and data intelligence are expected to complement HCLTech’s existing digitalised services. As part of this agreement, approximately 1,500 employees of CTG with telecom industry experience will transfer to HCLTech in various countries — including Spain, Italy, India, Japan and China — to service clients globally.

“With the incoming top engineering talent and industry-leading IP from the CTG group of HPE, we are adding significant capabilities and direct relationships with global CSPs that include 20 of the Top 30, accelerating our growth strategy in the global telecom industry,” said C Vijayakumar, CEO and Managing Director of HCLTech.

As we chart our course forward, we envision an even larger strategic partnership with HPE, paving the way for strong growth through innovation, joint integrated propositions and transformation services, he added. 

This transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in six to nine months.

To be sure, for the fourth quarter, HCLTech announced that its industry vertical growth was led by telecommunications, media and publishing, along with financial services. While Financial Services grew at 12.1% year-over-year at constant currencies (YoY CC) for the full year, the Telecommunications, Media, Publishing & Entertainment vertical recorded 39.2% growth (YoY) during the quarter.