IT services giant HCLTech announced that it has signed an agreement to acquire Hewlett Packard Enterprise’s (HPE) Telco Solutions business for $160 million, to expand capabilities in telecom segment.
The deal is expected to close over the next six months. It will be a 100 per cent cash buy out deal with a total purchase price of up to $160 million that will include $15 million of incentives based upon FY25 performance.
As part of this agreement, nearly 1,500 engineering and telecom specialists from 39 countries will join HCLTech’s global delivery team to help scale the business.
How does Telco Solutions strengthens HCLTech’s portfolio?
HCLTech had previously done another transaction with HPE in 2024 to acquire it’s Communications Technology Group (CTG). Telco Solutions used to be a part of CTG.
With this new this new acquisition agreement, HCLTech will gain industry-leading intellectual property (IP), product engineering and R&D talent, and client relationships with top global Communication Service Providers (CSPs).
Telco Solutions supports over 1 billion devices through its solutions, across 200 plus deployments globally. It capabilities spans supporting 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 monetization.
The previously acquired CTG portfolio included spanning Business Support Systems (BSS), network applications, service cloudification, and data intelligence.
“HCLTech will leverage this expanded capability to accelerate network transformation, Network as a Service (NaaS) and AI-led autonomous networking, the company said.
What did the management say?
“We are very excited about the opportunity ahead, as HCLTech is uniquely positioned to empower CSPs to realize their transformation into true technology companies—advancing the shift from telcos to techcos,” said Anil Ganjoo, chief growth officer and global head of telecom, media, publishing & entertainment and technology (TMT) at HCLTech.
He added, “Integrating this highly skilled HPE team and their market-proven IP strengthens our product-aligned model and accelerates our shift toward higher-value, IP-led services and non-linear growth.”
Rami Rahim, executive vice president, president and general manager, Networking, HPE said, “This transaction will yield benefits for CSPs for many years to come, as both HPE and HCLTech pursue their unique, differentiated approaches to supporting this vital sector of the market, through strategic focus and commitment to innovation.”
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