HCL Technologies Ltd will acquire Australian information technology and business consulting company DWS Ltd. In a regulatory filing, the company said the total equity value pay-out will be 158.2 million Australian dollars (about Rs 850.33 crore) after considering a total number of shares at 131.83 million on a fully diluted basis. The shareholders of DWS will also get a dividend of 0.03 Australian dollars per share which was declared by the company in its recent announcement of Annual Corporate Earnings for FY20 (June-end). The filing noted that 100% shares will be acquired through a Scheme of Arrangement after approval by DWS shareholders. The acquisition is subject to regulatory approvals and is expected to complete by December this year.
The deal will augment HCL’s capacity to service the growing demand for digital strategies in the Australian and New Zealand markets. HCL has invested in the region for over two decades — at present, it employs 1,600 people in major cities like Canberra, Sydney, Melbourne, Brisbane, and Perth – and is committed to enabling digitalisation and growing the local ecosystem. The acquisition brings in the marquee ANZ clientele and will provide the company linear growth opportunities such as geographical, client reach and cross-selling venues.
The acquisition comes two months after Roshni Nadar Malhotra, the daughter of founder Shiv Nadar, was appointed as the company’s chairperson. Shiv Nadar, however, will hold the title of chief strategy officer. For Noida-based HCL Technologies, acquisitions will be a part of the growth strategy as it has chalked out digital transformation, cloud business and next-gen technologies as a focus area for growth. In fact, the company has been quite aggressive in acquiring companies and has struck a dozen deals in India and overseas since 2015. In May, HCL Technologies acquired products and services built on Cisco Systems Inc.’s network technology for $50 million in cash.
Hybrid cloud, digital workplace, networks, cyber-security are some of the strong service offerings from the company as these have become critical for any transformational plans. The company has underlined that it will look at acquisitions in the digital and product space to build innovative products and expand in some geographies.
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