 "Volvo inks LOI to sell external IT business to HCL Tech")
Global truck maker Volvo said on Tuesday it signed a letter of intent with HCL Technologies to sell its external IT business in a deal seen boosting operating earnings by about 900 million Swedish crowns ($108.5 million) on closing.
The Swedish company said in a statement that about 2,600 Volvo staff would be affected by the transaction and offered employment at HCL. The deal was expected to close during the second quarter of next year.
"Not only will our cooperation with HCL Technologies provide significant cost-savings. We will also make a capital gain when the contract is signed," Volvo's acting chief executive Jan Gurander said in a statement.
The sale of Volvo's external IT operations is part of sweeping efficiency measures aimed at cutting 10 billion crowns of structural costs at the truck maker.
($1 = 8.2969 Swedish crowns)
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app