You are here: Home » News-CM » Equities » Hot Pursuit
Business Standard

HCL Tech scales record high on plan to acquire DWS

Capital Market 

HCL Technologies gained 2.92% to Rs 834.75 after the IT major announced its intent to acquire leading Australian IT solutions company, DWS.

Shares of HCL Technologies hit a record high of Rs 835 in intraday trade today. The stock is up 122% from its 52-week low of Rs 375.50 posted on 19 March 2020.

HCL Technologies before market hours today announced its intent to acquire DWS, a leading Australian IT, business and management consulting group. The acquisition of DWS will strongly enhance HCL's contribution to Digital initiatives in Australia and New Zealand while strengthening HCL's client portfolio across key industries. The transaction is expected to close in December 2020, subject to closing conditions, including regulatory approvals.

As the IT industry continues to evolve and the growing demand for digital strategies increases, DWS, with over 700 employees and offices in Melbourne, Sydney, Adelaide, Brisbane, and Canberra, delivers business and technology innovation to large clients across a spectrum of verticals.

The DWS Group, with FY20 revenue at A$ 167.9 million, provides a wide range of IT services including Digital Transformation, Application development & support, Program & Project Management and Consulting.

The acquisition shall be done by HCL Australia Services Pty., a wholly owned step-down subsidiary of HCL Technologies at A$1.20 per share for total equity value pay-out at A$158.2 million.

HCL Technologies offers its services and products through three business units - IT and Business Services (ITBS), Engineering and R&D Services (ERS) and Products & Platforms (P&P).

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, September 21 2020. 09:15 IST