HCL acquires external IT business of Sweden’s Volvo Group.
India’s fourth largest software exporter HCL Technologies Ltd on Tuesday said it has acquired the external IT (information technology) business of Sweden’s Volvo Group.
Feb 17, 2016 06:01 AM IST.
In a BSE filing on Tuesday, HCL said it is acquiring the external IT business of Volvo IT AB, a subsidiary of AB Volvo, the top holding company of the Volvo Group and the total cash consideration for this transaction is 1,130 million SEK.
In October 2015, the Noida-headquartered company said that it would be acquiring Volvo Group’s external IT business and the transaction would be closed in the second quarter of 2016. A PTI report in October quoting HCL’s BSE filing had said that it would be acquiring from the Volvo Group its external IT business relating to provision of IT infrastructure, mainframe service and application operation services for SEK 1.1 billion ($138 million) in cash.
With the acquisition, HCL will add 40 new customers from the Nordics and France. It will also acquire 2,500 people working for the Volvo Group and transfer them to HCL across 11 countries.
The company has also signed an IT deal with Volvo. Under the partnership, HCL will create a technology transformation roadmap for optimizing Volvo Group’s infrastructure and application operations and make it ready for the rapid advancements in business-enabling technology such as cloud, automation, business intelligence and big data, the company said.
The transformation roadmap would include 3,500 applications, more than 20 data centres, over 11,000 servers, 12 PB of storage and over 15,000 network devices. In addition, HCL will provide over 65,000 Volvo end users with access to productivity and user-enablement solutions, such as Microsoft Office 365, the company said.
The Indian IT major will also create an Automotive Centre of Excellence in Gothenbur, Sweden, based on the domain expertise of the Volvo team, to serve HCL’s global automotive and manufacturing customers.
“Combining the strengths of HCL with those of the transferred parts of Volvo IT will result in an organization with formidable capabilities and an intimate understanding of Volvo Group’s needs and opportunities. This, and the cultural fit between our two organizations, is the foundation for a partnership that will provide long term and strategic benefits for the Volvo Group,” says Olle Högblom, CIO of the Volvo Group and president of Volvo IT.
“We are excited to drive business transformation through IT for one of the world’s leading companies,” said Anant Gupta, president and chief executive officer, HCL Technologies. “We welcome over 40 new Volvo IT customers to the HCL client base. This addition enables HCL to achieve a stronger presence in the Nordics and the wider European region, and accelerates our journey in these markets.”
This story was first published on DealStreetAsia