HCLTech to acquire ASAP Group for $280M
NOIDA, INDIA — India’s third-largest information technology (IT) services firm, HCL Technologies (HCLTech), is acquiring ASAP Group, a German automotive engineering services company, for $280 million.
The purchase, expected to conclude in September, will grant HCLTech access to ASAP Group’s expertise in autonomous driving and e-mobility. It also signifies HCLTech’s intention to diversify from IT consultancy into higher-margin technical domains.
Acquiring ASAP Group aligns with the growing trend among India’s $245 billion software services sector to invest in advanced sectors like telecommunications, transportation, and aerospace.
The deal will bolster HCLTech’s presence in Germany, which the company identifies as a key market, according to Hari Sadarahalli, corporate vice president of engineering and R&D services at HCLTech. ASAP Group’s extensive experience in providing software, consulting, and testing services to European car manufacturers will also facilitate HCLTech’s entry into European and American automotive markets.
This acquisition adds to a series of strategic business expansions by HCLTech, which transitioned from producing personal computers to offering cost-effective back-office operations in the early 1990s. The company made $8.27 billion in revenues for FY 2022.
