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HCL buying IBM assets
Posted on Friday, 07 December 2018 14:16
HCL Technologies is taking to the acquisition trail with the purchase of certain software assets from US technology giant IBM.
Under the terms of the transaction, the buyer will pay USD 1.80 billion for select products, including Appscan, BigFix and Unica.
Completion of the deal remains subject to the green light from regulatory bodies and is expected to follow by mid-2019.
HCL chief executive C Vijayakumar stated that the products being picked up focus on areas like security, marketing and commerce, all of which are key areas for the company.
He added: “The large-scale deployments of these products provide us with a great opportunity to reach and serve thousands of global enterprises across a wide range of industries and markets.
“In addition, we see tremendous potential for creating compelling ‘as-a-service’ offerings by combining these products with our Mode-1 and Mode-2 services.”
IBM’s senior vice-president of cognitive solutions and research, John Kelly, added that the firm is selling the products in line with plans to concentrate on its AI for business, hybrid cloud, cybersecurity, analytics, supply chain and blockchain activities, among other areas.
He concluded by saying that the target assets are increasingly delivered as standalone products.
According to Zephyr, the M&A database published by Bureau van Dijk, IBM last announced an asset sale in June 2017, when it agreed to offload a number of operations to Certent for an undisclosed consideration.
The activities which went on the block at that time include IBM Cognos Disclosure Management, IBM Cognos Disclosure Management on Cloud, IBM Cognos Financial Statement Reporting and IBM Clarity 7.
HCL describes itself as a leading global technology company; the group is active in some 43 countries and employs 127,875 people worldwide.
It posted revenue of INR 148.60 billion (USD 2.09 billion) for the three months ended 30th September 2018, up from INR 124.33 billion for the corresponding timeframe in 2017.
© Zephus Ltd