HCLTech has signed an agreement to acquire Hewlett Packard Enterprise’s (HPE) Telco Solutions business for up to $160 million in cash. The deal strengthens HCLTech’s position in AI-led telecom engineering and network automation, adding 1,500 skilled professionals and globally proven intellectual property, pending regulatory approvals over the next six months.
In a strategic move to deepen its telecom technology portfolio, HCLTech on Thursday announced it will acquire the Telco Solutions business of Hewlett Packard Enterprise (HPE) for up to $160 million, including $15 million in performance incentives for FY25. The all-cash, asset carve-out deal is expected to close within six months, subject to approvals, including from the Committee on Foreign Investment in the U.S. (CFIUS).
The acquisition marks a continuation of HCLTech’s collaboration with HPE, following its 2024 purchase of assets from HPE’s Communications Technology Group. Telco Solutions supports over 1 billion devices across more than 200 global deployments, offering telecom-grade software in Operations Support Systems (OSS), Home Subscriber Server (HSS), and 5G Subscriber Data Management (SDM).
Major Takeaways
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Strategic Expansion: Strengthens HCLTech’s engineering and AI-led propositions for global Communication Service Providers (CSPs).
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Skilled Workforce: About 1,500 engineering specialists across 39 countries to join HCLTech.
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AI-Driven Focus: Enhances capabilities in autonomous networking, Network as a Service (NaaS), and AI-native networks.
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Transaction Structure: 100% cash consideration; structured as an asset carve-out, not a share purchase.
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Global Impact: Adds market-proven IP and client relationships with top-tier CSPs.
Anil Ganjoo, HCLTech’s Chief Growth Officer, said the acquisition “positions HCLTech uniquely to drive telecom transformation from telcos to techcos.” HPE’s Rami Rahim added the deal would advance innovation across the communication technology ecosystem.
Sources: NSE Corporate Filings, BSE Announcements, Company Press Release.