HCL Tech shares down 6% after acquiring IBM software products for $1.8bn

Shares of HCL Technologies were trading down in spite of the announcement that HCL Technologies and IBM have signed a definitive agreement under which the former will acquire select IBM software products.

Dec 07, 2018 05:12 IST India Infoline News Service

Shares of HCL Technologies were trading down 6% in spite of the announcement that HCL Tech and IBM have signed a definitive agreement, under which, HCL will acquire select IBM software products for $1.8bn.

The transaction is expected to close by mid-2019, subject to completion of applicable regulatory reviews.

The products include Appscan for secure application development, BigFix for secure device management, Unica (on-premise) for marketing automation, Commerce (on-premise) for omni-channel eCommerce, Portal (on-premise) for digital experience, Notes & Domino, for email and low-code rapid application development, and Connections for workstream collaboration.

“We continue to see great opportunities in the market to enhance our Mode-3 (Products and Platforms) offerings. The products that we are acquiring are in large growth markets like security, marketing, and commerce, which are also strategic segments for HCL. Many of these products are well-regarded by clients and positioned in the top quadrant by industry analysts,” said C Vijayakumar, President & CEO, HCL Technologies.

“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. I am confident that these products will see good growth trajectory backed by our commitment to invest in product innovation coupled with our strong client focus and agile product development. 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,” Vijayakumar further added.

HCL Technologies Ltd share price is currently at Rs946.90, down Rs65.05, or 6.43%, from its previous close of Rs1,011.95 on the BSE. The scrip opened at Rs1,001 and has touched a high and low of Rs1,001 and Rs935, respectively.

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