HCLTech to acquire German engineering firm ASAP Group for $279 million

HCLTech has signed a definitive agreement to acquire a 100 per cent equity stake in ASAP Group, a German automotive engineering services provider, for Euro 251.1 million (about $279 million). The acquisition is expected to close in September 2023.

The acquisition is expected to help HCLTech's engineering services by strengthening its advanced technology capabilities in the fast-growing automotive engineering services segment in Europe and other key global markets.

The company has over 1,600 employees across nine locations in Germany.

"Core engineering is at the heart of HCLTech's DNA and truly differentiates our services portfolio. ASAP has developed some exciting capabilities in automotive engineering, and we share their vision for future of mobility. This agreement will enable us to scale these capabilities and innovations across our global network," said Hari Sadarahalli, corporate vice president, Engineering and R&D Services at HCL Tech.

Also Read: HCLTech Q1FY24 results: Net profit rises 7.6% YoY to Rs 3,534 crore

"This investment also reinforces our commitment to Germany, which is a focus market for us. We will continue to nurture local talent and innovation ecosystem to unlock their potential," he added.

Headquartered in Ingolstadt, Germany, ASAP is focused on future-oriented automotive technologies in the areas of automotive driving, e-mobility, and connectivity. ASAP serves top automotive original equipment manufacturers (OEM) and tier-1 suppliers in Germany. ASAP's services portfolio comprises electrics/electronics, software, consulting, service testing and validation and vehicle development.

HCLTech said it sees "high potential" in areas such as autonomous driving, e-mobility, and connectivity, the areas of expertise for ASAP Group. For 2022, ASAP Group reported revenues of €154.3 million (about $172 million).

TAKING A LEAP

Acquisition expected to help HCLTech's engineering services

Will strengthen advanced technology capabilities in the fast-growing automotive engineering services segment in Europe and other key global markets

ASAP Group has over 1,600 employees across nine locations in Germany

ASAP Group reported revenues of €€154.3 million (about $172 million) in 2022