HCLTech to acquire Hewlett Packard Enterprise's telco solutions biz for $160 million

IT services company HCLTech Ltd on Thursday (December 18) said it has signed an agreement to acquire the telco solutions business of Hewlett Packard Enterprise (HPE) to strengthen its engineering and AI-led network propositions for global communication service providers (CSPs).

The acquisition follows an earlier transaction completed in 2024, through which HCLTech acquired certain assets from HPE’s Communications Technology Group. With this agreement, HCLTech will add industry intellectual property,

product engineering and R&D talent, and client relationships with leading global CSPs.

The telco solutions business supports more than one billion devices across over 200 deployments worldwide and enables operations support systems, home subscriber server, and 5G subscriber data management, along with AI-led closed-loop network automation.

Also Read: HCLTech Q2 Results: Revenue up 10.7% year-on-year, EBIT margin and revenue guidance unchanged

As part of the transaction, nearly 1,500 engineering and telecom specialists from 39 countries will join HCLTech’s global delivery team. The acquisition is structured as an asset carve-out and does not involve the purchase of shares. The consideration will be entirely in cash.

The total purchase price is up to $160 million, including $15 million of incentives linked to FY25 performance. The transaction is subject to regulatory approvals across countries, including approval from the Committee on Foreign Investment in the United States, and is expected to close in approximately six months from signing.

HCLTech said it will leverage the expanded engineering capability and acquired intellectual property to accelerate 5G network transformation, network cloudification, network as a service, autonomous networking, service management and orchestration, AI-led network automation, and AI-native networks for global CSPs.

Also Read: HCLTech shares could see further upside, analysts reassured after Q2 results

“We are very excited about the oppoĚunity ahead, as HCLTech is uniquely positioned to empower CSPs to realise their transformation into true technology companies—advancing the shift from telcos to techcos,” said Anil Ganjoo, chief growth officer and global head of telecom, media, publishing & enteĚainment and technology (TMT) at HCLTech.

"HCLTech has a compelling vision for enabling CSPs that will harness the Telco Solutions business’s momentum and track record of customer success to further accelerate innovation and customer impact,” said Rami Rahim, executive vice president, president and general manager, Networking, HPE.

Shares of HCL Technologies Ltd ended at ₹1,663.00, up by ₹8.00, or 0.48%, on the BSE today, December 18.

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