HCLTech buys telco solutions business from HPE for nearly $160 million

HCLTech said it will buy the telco solutions business of Hewlett Packard Enterprise (HPE) for about $160 million in cash to strengthen its position in the telecom industry, especially in areas such as 5G network transformation.

 

HCLTech, India’s third-largest IT services provider, will leverage this expanded capability to accelerate network transformation, network as a service (NaaS) and AI-led autonomous networking. As part of this deal, nearly 1,500 engineering and telecom specialists from 39 countries will join HCLTech’s global delivery team to help scale the business.

 

The deal will also help HCLTech to beef up its engineering and AI-led network propositions to global communication service providers.

 

“Integrating this highly skilled HPE team and their market-proven IP strengthens our product-aligned model and accelerates our shift towards higher-value, IP-led services and non-linear growth,” Anil Ganjoo, chief growth officer and global head of telecom, media, publishing and entertainment, and technology (TMT) at HCLTech, said in a statement.

 

Telco Solutions was formerly part of HPE’s Communications Technology Group (CTG), from which HCLTech bought certain assets in 2024. The newly acquired business supports more than one billion devices through its solutions, across 200 deployments globally. It enables operations support systems (OSS), home subscriber server (HSS) and 5G subscriber data management (SDM), with advanced AI-led closed-loop network automation for seamless network monetisation.

 

“This transaction will yield benefits for CSPs for many years to come, as both HPE and HCLTech pursue their unique, differentiated approaches to supporting this vital sector of the market, through strategic focus and commitment to innovation,” said Rami Rahim, executive vice president, president and general manager, Networking, HPE.