Indian IT services provider HCL Technologies has acquired its German rival H&D International Group, significantly bolstering its capabilities to serve the automotive industry in both the United States and Europe.
The deal comes three years after HCL purchased Volvo’s IT unit with 2,500 software professionals, on top of landing an agreement to manage the car maker’s technology infrastructure.
Financial terms were not revealed, but multiple reports suggest HCL Technologies paid US$34.7 million for the German company.
“Germany is a critical market for HCL as we continue to expand our business in Europe. We feel the German market is at an inflection point and it is the right time for HCL to expand and make significant investments here,” stated Ashish Gupta, Vice President of HCL.
H&D employs 1,400 people and claims to be one of the largest IT service providers in the German automotive industry. It is believed that most of the German automakers, including Volkswagen, are its clients.
The company also operates in more than 20 locations worldwide, including Germany, the US, Czech Republic, and Poland.
It specializes in IT infrastructure and application services, particularly in IT research and development, and has extensive expertise in SAP, computer-aided technologies, engineering services, and customer-specific product development.
With more than US$7.8 billion in annual revenue, HCL Technologies is one of the largest India-based IT service providers with a global footprint.
“By combining H&D’s delivery capabilities with those of HCL, we have an unprecedented opportunity to add tremendous value to the services we provide to support our clients’ IT transformation ambitions,” stated Bernhard Hönigsberg, CEO of H&D.