HCLTech acquires telecom assets from HPE in $225Mn deal

NEW YORK, UNITED STATES and NOIDA, INDIA — Global technology firm HCLTech announced the acquisition of key assets from Hewlett Packard Enterprise’s (HPE) Communications Technology Group (CTG) in a $225 million deal.
This involves HCLTech acquiring specific assets from HPE’s Communications Technology Group (CTG), including vital intellectual property (IP), engineering and R&D talent, and customer relationships with leading global Communication Service Providers (CSPs).
“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.
“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.”
Approximately 1,500 CTG employees with deep telecom experience will join HCLTech across countries like Spain, Italy, India, Japan and China.
Complementing AI, cloud and telecom offerings of HCLTech and HPE
HCLTech will acquire a portfolio of service offerings around business support systems, network applications, service cloudification and data intelligence from CTG. These capabilities complement HCLTech’s existing AI, IoT and data-driven services, enhancing efficiency and integration.
HPE will retain its former CTG operations support systems business focused on orchestration and assurance for public and private 5G networks.
📢 We are delighted to announce that HCLTech will extend its leadership in the #telecom services market with Hewlett Packard Enterprise carving out certain Communications Technology Group (CTG) assets to HCLTech.
📶 Through this arrangement, HCLTech will gain industry-leading… pic.twitter.com/hCWfTKpMd5
— HCLTech (@hcltech) May 23, 2024
“HPE is pleased to have identified HCLTech as the right partner to support the ongoing transformation of global telecom, media and tech companies,” said Antonio Neri, President and Chief Executive Officer of Hewlett Packard Enterprise.
“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.”
Expanding HCLTech’s global footprint
The CTG asset acquisition, subject to regulatory approval, is expected to close within six to nine months. It expands the footprint of HCLTech, which operates across 60 countries delivering digital, engineering, cloud and AI capabilities. The company serves clients across major industries like financial services, manufacturing, healthcare, technology, telecom, retail and public services.
HCLTech reported revenues of $13.3 billion for the 12 months ending March 2024. It recently secured the #7 spot in the OA500 2024, an objective index of the world’s top 500 outsourcing companies.