New Delhi: HCL Technologies on Wednesday said it will acquire Wolfsburg-based IT and engineering services provider H&D International Group for 30 million euros, a move that will help the Indian IT major strengthen its delivery capabilities in the German market.
The company has signed a definitive agreement to acquire H&D International Group, and the deal will help HCL attain significant in-country front office and delivery capabilities as well as further enhance HCL's domain expertise in the global automotive sector, HCL Technologies said in a statement.
According to a BSE filing by HCL, the cash deal is 30 million euros (including earnouts) in size. The acquisition is expected to be completed by end of August.
H&D International Group, one of the largest IT service providers in the German automotive industry, operates in over 20 locations globally including Germany, the US, Czech Republic and Poland. Its revenue for 2017 was 74.1 million euros.
Founded in 1996, H&D specialises in IT infrastructure, application services particularly in R&D IT, shop floor IT and Industry 4.0 solutions.
H&D's existing delivery centre in Gifhorn, Germany, will become part of HCL's global delivery footprint and will focus on IT and engineering services both in Germany and globally, the statement said.
"Germany is a critical market for HCL as we continue to expand our business in Europe. 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 Corporate Vice President Ashish Gupta said.
Bernhard Hönigsberg, CEO of the H&D International Group, said by combining H&D's delivery capabilities with those of HCL, the company has an "unprecedented opportunity" to add value to the services it provides to support clients' IT transformation ambitions.
Updated Date: Jun 28, 2018 17:45 PM