HCLTech To Buy Hewlett Packard's Telecom Solutions Business For Rs 1,400 Crore

HCLTech Ltd. on Thursday announced the acquisition of Hewlett Packard Enterprise Co.'s telecom solutions business to strengthen engineering and AI-led network propositions to Global Communication Service Providers (CSPs).

The deal is valued at $160 million or around Rs 1,440 crore, including $15 million of incentives based upon FY25 performance, a statement said.

The acquisition, expected to be completed in six months, is buyout of a division and does not involve purchase of shares. The deal is structured as an asset carve-out, according to the statement said.

HPE's Telco Solutions supports more than one billion devices through its solutions, across 200 deployments globally. It was formerly part of HPE’s Communications Technology Group (CTG), from which HCLTech acquired certain assets in 2024 which have been successfully integrated.

"HCLTech will leverage the expanded engineering capability and the acquired intellectual property to accelerate 5G network transformation, network cloudification, Network as a Service (NaaS), autonomous networking, Service Management and Orchestration (SMO), AI-led network automation and AI-native networks for global CSPs," the company said.

Nearly 1,500 specialists in 39 countries including India, France, Japan, and Italy will transfer to HCLTech and its affiliates.

Revenue from telecommunications, media, publishing and entertainment vertical had a 12.7% share in HCLTech's topline as of September quarter. Income grew 11.7% year-on-year during the second quarter.

Shares of HCLTech settled 0.4% higher at Rs 1,661.45 on the BSE, ahead of the announcement, compared to a flat benchmark Sensex. The stock is down 13% year-to-date.