In Short
- HCL Tech aims for growth in automotive space with acquisition
- German firm ASAP Group acquired by HCL Tech for $280 million
- ASAP Group serves top automotive manufacturers and tier-1 suppliers
By ReutersIndian IT services major HCL Tech said late on Wednesday it will buy German automotive engineering services firm ASAP Group for an enterprise value of about 251 million euros ($279.83 million) as it looks to grow in the automotive space.
HCL Tech would leverage the acquisition for further expansion into automotive markets in Europe, the Americas and Japan, the company said in a stock exchange filing.
Founded in 2010, ASAP Group serves top automotive original equipment manufacturers and tier-1 suppliers in Germany. Its portfolio includes software development, consulting services and vehicle development the statement added.
The announcement comes after HCL Tech reported a weaker-than-expected June-quarter result as its technology and telecom clients cut discretionary spending amid global macroeconomic uncertainties.
The company’s net profit rose 7.65 per cent to 35.34 billion rupees ($430.91 million) in the quarter ended June 30, but missed analysts’ average estimate of 38.17 billion rupees, according to Refinitiv IBES data.
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