HCL buys PowerObjects for Rs 300 crore

HCL Technologies on Thursday said it had acquired the Minneapolis-based Microsoft Dynamics CRM provider PowerObjects for $46 million (around Rs 301 crore). The cash consideration includes contingent payments upon achieving certain financial milestones.

Founded in 1993, PowerObjects had trailing 12-month revenues of $37 million on September 30, 2015. The company employs over 250 people, who will be transferred to the rolls of HCL.

HCL said the acquisition would enable it to take advantage of the rapidly growing CRM industry. Research firm Gartner has projected the CRM market to touch $36 billion by 2017. Within the CRM market, Microsoft Dynamics CRM grew at a much faster rate of 21.7 per cent in 2014. "Together, HCL and PowerObjects will now offer one of the largest Microsoft Dynamics practices in North America," said Greg Palesano, executive vice-president and global head of application services at HCL Technologies.

"The acquisition reinforces our commitment to helping clients who rely on Microsoft as a strategic platform. We look forward to combining our global scale with PowerObjects' capability and expertise to build a world-class Microsoft Dynamics CRM business positioned to capture the growing opportunities in the CRM services market," he added.

HCL Technologies is pursuing an aggressive acquisition strategy though most have been tuck-in acquisitions. Last week, the company agreed to acquire Bengaluru-based engineering services firm Concept to Silicon Systems for an undisclosed amount. A couple of days ago, it had announced plans to acquire the external IT business of the Volvo Group for $138 million. In July, the company bought some assets of US-based consulting services and solutions firm Trygstad Technical Services in an all-cash deal.

According to HCL, the existing leadership team of PowerObjects will remain in place. "We are excited that HCL will carry on the PowerObjects heritage of innovation," said Dean Jones, CEO of PowerObjects. "As clients attempt to grow their revenues by improving their CRM processes and technologies, we believe that blending our teams and areas of expertise will result in increasingly transformational products and services," he added.