HCL Tech to Acquire H&D International for EUR 30 Million
HCL Technologies will be acquiring Wolfsburg-based H&D International Group for Euro 30 million, as it looks to expand presence in the European market.
This will be the third acquisition for HCL this year. The country’s fourth-largest software services firm operates out of 39 countries.
The acquisition of H&D for Euro 30 million (including earnouts) cash deal is part of HCL’s long-term growth plan in Germany. The deal, likely to be completed by August 2018, will help HCL attain significant in-country front office and delivery capabilities and will further enhance the company’s domain expertise in the global automotive sector.
H&D, 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 Euro 74.1 million.
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.
“Germany is a critical market for HCL. 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,” said Ashish Gupta, corporate vice-president, HCL.
Klaus Holzhauser, managing director of an independent European research and consulting firm Pierre Audoin Consultants Germany, said H&D has a strong footprint in the German and Central European automotive markets and is the IT services provider to one of Germany’s biggest car manufacturers, making it a great investment for HCL.
Bernhard Hönigsberg, CEO of the H&D International Group, said: “By combining H&D’s delivery capabilities with those of HCL, we have an unprecedented opportunity to add tremendous value to the services we provide to support our clients’ IT transformation ambitions.”
Founded in 1996, H&D specialises in IT infrastructure, application services particularly in R&D IT, shop floor IT and engineering services. – Business Standard
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