HCL acquiring intellectual properties from IBM a risky bet, say experts

Industry experts are of the view that the company has taken a risky bet by investing in those IPs

HCL Technologies will acquire select intellectual properties (IPs) from global technology giant IBM in a deal valued at around $1.8 billion, making it the largest acquisition in the domestic IT services space.

The Shiv Nadar-owned IT major said it would buy nine IPs from IBM in areas like secure device management, marketing automation, omnichannel e-commerce, and digital experience. The all-cash deal, which is expected to be concluded by mid-2019, will largely be funded through internal accruals, along with a mix of $300 million in borrowing.

Of the $1.8 billion, around 50 per cent will be paid by the middle of