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HCL Technologies to acquire Hewlett Packard Enterprise telco solutions business for $160 million
HCL Technologies to acquire Hewlett Packard Enterprise telco solutions business for $160 million
New Delhi: IT services company HCL Technologies (HCLTech) on Thursday announced it will purchase the Telco Solutions Business of Hewlett Packard Enterprise for a total purchase price of up to USD 160 million. The purchase price includes USD 15 million of incentives based upon FY25 performance. “HCLTech to acquire Telco Solutions Business from Hewlett Packard Enterprise (HPE) to further strengthen its engineering and AI-led network propositions to global communication service providers,” the company said in a release.
The move deepens HCLTech's engineering, AI and cloud-native offerings for the telecom industry, it added. The all-cash deal has a total purchase price of up to USD 160 million, including USD 15 million of incentives based upon FY25 performance, HCLTech said in a BSE filing. Following an earlier transaction with HPE in 2024, HCLTech will, through this new acquisition agreement, further gain intellectual property (IP), product engineering and R&D talent, and client relationships with top global Communication Service Providers (CSPs).
Telco Solutions supports more than 1 billion devices through its solutions, across 200 plus deployments globally. It enables Operations Support Systems (OSS), Home Subscriber Server (HSS) and 5G Subscriber Data Management (SDM), with advanced AI-led closed-loop network automation for seamless network monetisation, the release added. Telco Solutions was formerly part of HPE's Communications Technology Group (CTG), from which HCLTech acquired certain assets in 2024.
The previously acquired CTG portfolio, spanning Business Support Systems (BSS), network applications, service cloudification, and data intelligence, has been successfully integrated and is now growing, the Noida-headquartered IT firm said. HCLTech will leverage this expanded capability to accelerate network transformation, Network as a Service (NaaS) and AI-led autonomous networking.
Notably, as part of this pact, nearly 1,500 engineering and telecom specialists from 39 countries will join HCLTech's global delivery team to help scale the business. This transaction is subject to regulatory nods and other customary closing conditions and is expected to close in about six months. “We are very excited about the opportunity ahead, as HCLTech is uniquely positioned to empower CSPs to realise their transformation into true technology companies – advancing the shift from telcos to techcos,” Anil Ganjoo, chief growth officer and global head of telecom, media, publishing & entertainment and technology (TMT) at HCLTech said.
Integrating this skilled HPE team and their market-proven IP, strengthens HCLTech's product-aligned model and accelerates the shift toward higher-value, IP-led services and non-linear growth, Ganjoo said. HCLTech has a “compelling vision” for enabling CSPs that will harness the Telco Solutions business' momentum and track record of customer success to accelerate innovation and customer impact, Rami Rahim, executive vice president, president and general manager, Networking at HPE said.
Source: Msn
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