HCLTech acquires key assets from Hewlett Packard Enterprise to boost telecom services

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HCLTech (NSE: HCLTECH), a global leader in technology services, has announced a significant expansion in the telecom services market through an asset acquisition from Hewlett Packard Enterprise (NYSE: HPE). This strategic move involves the carving out of specific assets from HPE’s Communications Technology Group (CTG), positioning HCLTech to enhance its service offerings in the rapidly evolving telecom sector.

Acquisition Details and Strategic Benefits

The agreement will see HCLTech acquiring valuable intellectual property (IP), engineering and research and development (R&D) talent, and client relationships with top global Communication Service Providers (CSPs). The portfolio HCLTech gains includes industry-leading IP and solutions related to Business Support Systems (BSS), network applications, service cloudification, and data intelligence. These capabilities are set to complement HCLTech’s existing services that leverage artificial intelligence (AI), the Internet of Things (IoT), and data-driven models.

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HPE’s Continuing Focus

While HCLTech integrates the CTG assets, HPE will retain its Operations Support Systems (OSS) division within the HPE Aruba Networking group. This division focuses on OSS, orchestration and assurance, and both public and private 5G networking solutions, continuing to serve HPE’s telecommunications customers and partners effectively.

HCLTech purchases key assets from Hewlett Packard Enterprise to bolster telecom services

HCLTech purchases key assets from Hewlett Packard Enterprise to bolster telecom services

Transaction Details and Expected Outcomes

The transaction is subject to regulatory approvals and customary closing conditions and is expected to close within the next 6 to 9 months. This acquisition is seen as a key step in HCLTech’s strategy to strengthen its telecommunications offerings globally.

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Leadership Insights

C Vijayakumar, CEO and Managing Director of HCLTech, commented on the acquisition: “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. 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.”

Antonio Neri, President and Chief Executive Officer of Hewlett Packard Enterprise, also shared: “HPE is pleased to have identified HCLTech as the right partner to support the ongoing transformation of global telecom, media and tech companies.”

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Employee Transition and Global Impact

Approximately 1,500 employees with telecom industry experience from HPE’s CTG will transition to HCLTech. These employees are based in various countries, including Spain, Italy, India, Japan, and China, and will continue to service global clients under HCLTech’s leadership.

This acquisition by HCLTech from HPE marks a significant realignment in the telecommunications industry, reflecting HCLTech’s commitment to integrating cutting-edge technology and expertise to provide superior service offerings. The strategic acquisition of CTG assets from HPE not only enhances HCLTech’s capabilities but also solidifies its position as a leader in the global market for telecom services.

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