HCL Technologies’ Recent Acquisition Bolsters Portfolio, Fosters Development

HCL Technologies is an Indian IT services and consulting firm with over 150,000 employees and presence in dozens of countries. HCL has recently been on a streak of investments and acquisitions, looking to leverage its productivity in underserved regions.

To that end, and in an effort to bolster its portfolio in Australia and New Zealand, HCL has announced its acquisition of Australia-based company DWS. DWS is another IT, business, and management consulting firm, employing over 700 people.

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The acquisition, to the tune of $158 million, comes as the result of a wave of digitalization by key IT firms around the world. DWS will be HCL’s turnkey operation in this region, allowing it to smoothly gain market share and lead the way into future projects.

Acquisitions like this are a key element of IT development in areas where digital transformation is often expensive and time consuming. For countries like Australia and New Zealand, their location and geography have historically made digitalization difficult. HCL Technologies is removing the friction from that transition by supplying its expertise, funds, and products to the area.

The acquisition is considered a strong move by HCL, further solidifying its position as one of the most progressive IT services firms in the world. This move will also prove beneficial for DWS – as HCL’s reputation in the field, along with its client base and infrastructure, will give DWS massive leverage in expanding operations under the HCL family. HCL will also have the opportunity to upsell services to DWS clients, giving the company a foot in the door for localization in Australian cities.

“[Our] combined strengths will further accelerate the digital transformation journeys of our clients and innovations for their end customers,” said Michael Horton, HCL’s Executive Vice President and Country Manager for Australia and New Zealand. “HCL has invested in the region for over 20 years and is committed to enabling digitalization and growing the local ecosystem.”

The future partnership between HCL and DWS is sure to mean stronger technological growth and development in Australia and New Zealand and is ultimately a mutually beneficial move that will help to provide increased services and offerings to the region’s businesses. The transaction is expected to close in December 2020.