HCL Tech slips after acquiring select IBM products for $1.8 billion

HCL Technologies was down 4.44% to Rs 967 at 9:21 IST on BSE after the company said it will acquire select IBM software products for $1.8 billion.

The announcement was made after market hours yesterday, 6 December 2018.

Meanwhile, the S&P BSE Sensex was up 152.48 points, or 0.43% to 35,464.61.

On the BSE, 38,000 shares were traded in the counter so far compared with average daily volumes of 70,000 shares in the past two weeks. The stock had hit a high of Rs 1001 and a low of Rs 965 so far during the day. The stock hit a 52-week high of Rs 1,124.50 on 25 September 2018. The stock hit a 52-week low of Rs 854 on 7 December 2017.

HCL Technologies (HCL) said the transaction is expected to close by mid-2019, subject to completion of applicable regulatory reviews. The software products in scope represent a total addressable market of more than $50 billion and 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. HCL and IBM have an ongoing IP Partnership for five of these products.

On a consolidated basis, HCL Technologies' net profit rose 4.24% to Rs 2,534 crore on 7.08% increase in net sales to Rs 14,860 crore in Q2 September 2018 over Q1 June 2018.

HCL Technologies (HCL) is a leading global technology company that helps global enterprises re-imagine and transform their businesses through Digital technology transformation.

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