Wednesday, June, 19, 2024 10:56:55

* The acquisition would be the largest in the Indian software firm’s history.

* The two companies already have an ongoing IP partnership for some of the products.

HCL Technologies Ltd. (HCL), an Indian multinational software firm has reportedly announced that it would be acquiring some select IBM software products in a $1.8 billion deal.

Reports cite, the deal is expected to reach conclusion by the end of the second quarter of 2019. It would be the largest acquisition ever in the Noida-headquartered company’s history.

According to a press release by HCL Technologies, the IBM software products in question represent a gross addressable market of over $50 billion. The products to be acquired include, secure device management tool BigFix, secure application development tool Appscan, Unica for marketing automation, Commerce an omni-channel eCommerce tool, Portal for the digital experience, Domino & Notes for email and low-code RAD (rapid application development) and workstream collaboration tool connections.

The President & CEO of HCL Technologies, C Vijayakumar stated that the software products being purchased by the company fall under the extensive, rapidly-growing market areas of Marketing, Security & Commerce – the company’s strategic segments. Vijayakumar further added that large-scale launch of these products would present HCL with a great opportunity to reach & be able to serve thousands of different global enterprises across the world.

The company is reportedly confident that the products would witness a healthy growth trajectory supported by its strong customer-focus, agile development of products and commitment to invest in product innovation.

The Senior Vice President of IBM, John Kelly stated that over the previous four years, IBM has been prioritizing its investment in areas such as cybersecurity, hybrid cloud, AI for business analytics, blockchain & supply chain and industry-specific solutions & platforms including industrial IOT, financial services and healthcare – domains where IBM is currently a leader. Kelly further added that the time is ripe for the company to divest some collaborations and believes that they would be an excellent strategic fit for HCL.