HCL Technologies Ltd said on Wednesday that it has signed a definitive agreement to acquire 100 per cent stake in Wolfsburg-based IT and engineering services provider H&D International Group for about $35 million, as part of its long-term growth plan in Germany.
Through this deal, HCL Tech will attain significant in-country front office and delivery capabilities and further enhance the company’s domain expertise in the global automotive sector, according to a press statement.
Founded in 1996, H&D International specialises in IT Infrastructure, application services particularly in R&D IT, shop floor IT and Industry 4.0 solutions and claims to have expertise in SAP, computer-aided technologies (CAx), engineering services and customer-specific product development. It operates in over 20 locations globally, including Germany, the US, Czech Republic and Poland.
As part of the deal, H&D’s existing delivery centre in Gifhorn, Germany, will become part of HCL Tech’s global delivery footprint and will focus on IT and engineering services both in Germany and globally. The company’s revenue for the financial year ended December 2017 was EUR 74.1 million.
“Germany is a critical market for HCL as we continue to expand our business in Europe. We feel the German market is at an inflection point and it is the right time for HCL to expand and make significant investments her,” said Ashish Gupta, Corporate Vice President at HCL Technologies.
Bernhard Hönigsberg, CEO of the H&D International Group, said: “By combining H&D’s delivery capabilities with those of HCL, we have an unprecedented opportunity to add tremendous value to the services we provide to support our clients’ IT transformation ambitions. Furthermore, the experience and know-how of HCL and H&D complement each other perfectly and our employees are set to benefit significantly from the new opportunities that lie ahead.”
Noida-based HCL operates out of 39 countries and clocked consolidated revenues of $7.8 billion for the twelve months ended 31st March 2018.
HCL Technologies has been on an acquisition spree to propel its growth. In April, the company along with tech-focused private equity firm Sumeru Equity Partners had entered into an agreement to acquire Actian Corporation, in a $330-million all-cash deal. The same month, it also announced acquisition of C3i Solutions, a multi-channel customer engagement services for the life sciences and consumer packaged goods (CPG) industries, from Merck & Co, Inc for $60 million.
In September last year, the Noida-based technology firm had acquired Edinburg-based data management firm Datawave for up to £7 million ($9.1 million) in cash. Its largest buyout so far was that of SAP consulting firm Axon in 2008 for 440 million pounds (then Rs 3,100 crore).