HCLTech said on May 23 it will acquire Communications Technology Group assets from Hewlett Packard Enterprise (HPE) for $225 million to bolster its engineering services to global Communication Services Providers (CSPs) or telecom operators.
Under the deal, HCLTech will get top engineering and R&D talent and IP from the CTG group of HPE, which it said will help it "significant" capabilities and direct relationships with global CSPs that include 20 of the Top 30, accelerating its growth strategy in the global telecom industry.
As part of this agreement, approximately 1,500 employees of CTG with telecom industry experience and 700 contractors will transfer to HCLTech in various countries -- including Spain, Italy, India, Japan and China -- to service clients globally.
HCLTech will gain a portfolio of service offerings that includes IP, solutions and systems integration around Business Support Systems (BSS), network applications, service cloudification and data intelligence.
These capabilities will also complement HCLTech’s existing highly digitized services with artificial intelligence (AI), Internet of Things (IoT), and data-driven models; enhanced efficiency; frictionless integration; and an end-to-end partner ecosystem, the company said in a statement.
HPE will retain the part of its former CTG business focused on Operations Support Systems (OSS).
“With this transaction and our planned strategic partnership with HPE, we are strengthening our telecom practice to address the rapidly expanding and transforming global telecom market,” said C Vijayakumar, CEO and Managing Director of HCLTech.
The Telco Solutions group, which sits within HPE Aruba Networking, is a leader in OSS, orchestration and assurance -- as well as public 5G SDM and private 5G networking -- and will continue to deliver value for HPE's telco customers and partners.
This transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in six to nine months.
“In joining HCLTech, our Communications Technology Group will become part of a strong partner that understands and appreciates the significant heritage of our CTG business, its strategy and its potential for the future," Antonio Neri, President and Chief Executive Officer of Hewlett Packard Enterprise said in a joint statement.
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