HCL Tech to sell stake in State Street JV for $170 million

HCL Technologies Ltd. is in talks with State Street Corp. to sell its entire 49% equity stake in joint venture State Street HCL Services for $170 million or around Rs 1,417 crore. The amount will be in addition to the JV’s net book value.

“The equity divestment is being discussed pursuant to the call option intended to be exercised by State Street in accordance with the agreement,” the company said in an exchange filing on Monday.

The deal is expected to be completed by the second quarter of the calendar year 2024. The consideration includes amounts for the transfer of shares and other components.

The U.S.-based State Street and the Indian IT major, through its U.K. unit, had tied up in 2012 to provide business operations services.

“This integration is a natural evolution of our successful relationship with HCLTech, which remains a strategic technology partner,” said Mostapha Tahiri, executive vice president and incoming chief operating officer of State Street.

The company said the acquisition will further streamline State Street’s operating model in India, “to facilitate faster decision-making and a more effective and efficient experience for its clients”.

Shares of HCLTech closed 0.07% higher at Rs 1,335 on the BSE ahead of the announcement on Monday, compared to a 2.05% advance in the benchmark Sensex. Bloomberg