HCLTech Bolsters Telecom Services Expertise with Strategic Asset Acquisition from HPE

HCL Technologies Limited (HCLTech), a leading global IT services provider, announced a strategic move to further bolster its presence in the telecom services sector. Through an asset acquisition agreement, HCLTech will acquire key assets from Hewlett Packard Enterprise’s (HPE) Communications Technology Group (CTG).

Expanding Capabilities Across the Spectrum

This acquisition signifies HCLTech’s commitment to continued leadership in the telecom services sector alongside HPE. The acquired assets will significantly enhance HCLTech’s capabilities in several key areas:

• Top Talent and Cutting-Edge IP: HCLTech will gain access to a team of highly skilled engineering and R&D personnel, bolstering their internal expertise. Additionally, the acquisition includes industry-leading intellectual property (IP) that will further empower HCLTech’s offerings.
• Strong Customer Relationships: The deal grants HCLTech access to established customer relationships with leading global communication service providers (CSPs). This enhanced network will enable HCLTech to expand its reach and deliver greater value to a wider client base.
• Expanded Service Portfolio:  HCLTech will acquire a comprehensive portfolio of service offerings focused on Business Support Systems (BSS), network applications, service cloudification, and data intelligence. This includes industry-leading IP, solutions, and systems integration expertise. These new capabilities align perfectly with HCLTech’s existing offerings, further strengthening its position as a highly digitised and innovative service provider.

Focus Remains on OSS Solutions for HPE

It is noteworthy that HPE will retain ownership of the segment of its CTG business that is centred around Operations Support Systems (OSS). This division will continue to lead in OSS, orchestration, and assurance solutions for both public and private 5G networks as well as 5G SDM. It is part of HPE Aruba Networking’s Telco Solutions group. Delivering outstanding value to its telecom partners and clients is still HPE’s top priority.

It is anticipated that this deal will conclude in 6 to 9 months, subject to regulatory clearances and other standard closing conditions.

“With this transaction and our planned strategic partnership with HPE, we are strengthening our telecom practice to address the rapidly expanding and transforming global telecom market. With the incoming top engineering talent and industry-leading IP from the CTG group of HPE, we are adding significant capabilities and direct relationships with global CSPs that include 20 of the Top 30, accelerating our growth strategy in the global telecom industry,” said C Vijayakumar, CEO and Managing Director of HCLTech.

He further added, “As we chart our course forward, we envision an even larger strategic partnership with HPE, paving the way for strong growth through innovation, joint integrated propositions and transformation services.”

“At HPE, we continually refine and innovate our portfolio to meet the dynamic needs of our customers. HPE is pleased to have identified HCLTech as the right partner to support the ongoing transformation of global telecom, media and tech companies. In joining HCLTech, our Communications Technology Group will become part of a strong partner that understands and appreciates the significant heritage of our CTG business, its strategy and its potential for the future,” said Antonio Neri, President and Chief Executive Officer of Hewlett Packard Enterprise.

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