HCL Technologies Limited, regarded as one of the foremost IT firms of India, has apparently announced that it has inked a definitive contract to take over H&D International Group, a Wolfsburg-based IT service management company. As per reliable sources, the transaction is expected to be concluded by the month of August this year.
For the record, the H&D International Group is touted to be one of the largest IT and engineering services providers of Germany with operations situated in over 20 locations across the globe. With a formidable presence in the automotive sector, the firm had reportedly garnered a revenue of 74.1 million Euros last year.
Sources familiar with the development claim that the latest acquisition is a part of HCL’s long-term growth strategy in Germany. The IT giant is likely to enhance its domain expertise in the global automotive sector and accomplish significant in-country front office and delivery capabilities, cite trusted sources.
Speaking on the firm’s latest acquisition bid, Corporate Vice President at HCL Technologies, Ashish Gupta was quoted stating that Germany has emerged as a crucial market given the business expansion activities being undertaken by the company across Europe. He further added that it is the most appropriate time for HCL to make significant investments in the region as the Germany market seems to be at an inflection point.
According to Sharekhan, a leading retail brokerage firm, the proposed takeover is likely to fortify the presence of HCL Technologies in the ERD space which is known to contribute a total of 24.1 percent in its overall revenue portfolio. As per trusted sources, the CC growth guidance of the firm for FY19 included 125bps owing to more acquisitions in the pipeline.
After announcing its intention to buy H&D International Group, the shares of HCL Technologies reportedly rose 1.5 percent in intraday trading on Wednesday.