HCL Tech to buy German IT services firm for $35 mn

HCL Technologies Ltd said has agreed to acquire 100% stake in an German IT and engineering services provider H&D International Group for €30 million (around Rs 240 crore or $35 million) in a cash deal which includes earn-outs.

In a stock-exchange filing, HCL said the acquisition was part of its long-term growth plan in Germany. H&D will further enhance HCL’s domain expertise in the global automotive sector, it added.

“Germany is a critical market for HCL as we continue to expand our business in Europe,” said Ashish Gupta, corporate vice president at HCL Technologies. “We feel the German market is at an inflection point and it is the right time for HCL to expand and make significant investments here.”

HCL Technologies said it will attain significant in-country front office and delivery capabilities through this deal, which it expects to close by the end of August this year/

The Wolfsburg city based H&D International Group is among the largest IT service providers in the German automotive industry. It has operations in over 20 locations globally including Germany, US, Czech Republic and Poland.

As part of the deal, H&D’s existing delivery centre at Gifhorn in Germany will become part of HCL’s global delivery footprint and will focus on IT and engineering services both in Germany and globally.

H&D’s revenue for the financial year ended December 2017 stood at €74.1 million.