HCL Tech hits new record high on plans to acquire Australia-based IT solution firm DWS

HCL Tech acquisition of DWS is expected to close in December this year and is subject to regulatory approvals.

Sep 21, 2020 12:09 IST India Infoline News Service

HCL Technologies

IT-major HCL Technologies was the lead gainer on the exchanges as the stock hit a new record high on Monday's trading session. Investors sentiment was lifted after the company announced its intent to acquire DWS Limited which is a leading Australian IT, business and management consulting group.

On Sensex, HCL Tech stock has gained by nearly 5% by touching a 52-week high of Rs849.70 per piece. The stock has maintained outperformance.

DWS has A$167.9M revenue in FY20. The company provides IT services like Digital Transformation, Application development & support, Program & Project Management and Consulting.

The acquisition of DWS will enable HCL’s contribution to Digital initiatives in Australia and New Zealand while strengthening HCL’s client portfolio across key industries.

“We are excited for this expansion of HCL Technologies in Australia and New Zealand and are confident that our combined strengths will further accelerate the digital transformation journeys of our clients and innovations for their end customers,” said Michael Horton, Executive Vice President & Country Manager, Australia & New Zealand, HCL Technologies on Monday.

Horton added, "HCL has invested in the region for over 20 years and is committed to enabling digitalisation and growing the local ecosystem. DWS has forged a sterling reputation, powered by highly talented consultants who enable organizations to be at the cutting edge of technology. We look forward to welcoming the DWS team to HCL and creating enhanced global learning and career opportunities for them.”

HCL Tech states that as IT industry continues to evolve and the growing demand for digital strategies increases, DWS, with over 700 employees and offices in Melbourne, Sydney, Adelaide, Brisbane, and Canberra, delivers business and technology innovation to large clients across a spectrum of verticals.

Danny Wallis, CEO and Managing Director, DWS said, "This acquisition represents an outstanding outcome for all DWS stakeholders: shareholders, employees, clients and other business partners.”

At present, HCL Tech has 1,600 employees in major cities, including Canberra, Sydney, Melbourne, Brisbane, and Perth.

HCL Tech acquisition of DWS is expected to close in December this year and is subject to regulatory approvals.

At around 12.42 PM, HCL Tech stock trades at Rs842.15 per piece surging by 3.83% on Sensex. 

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