HCL Technologies has acquired DWS Limited, an Australian IT, business, and management consulting group. In a regulatory filing, HCL Technologies said the total equity value pay-out will be 158.2 million Australian dollars, or approximately US$114 million.
This is M&A deal 377 that ChannelE2E has covered so far in 2020. See the full M&A deal list here.
HCL Technologies is India’s fourth-largest software exporter. The acquisition of DWS will strengthen its client portfolio across what HCL sees as key industries, the company said. DWS has over 700 employees working from offices in Melbourne, Sydney, Adelaide, Brisbane, and Canberra. HCL Technologies currently employs 1,600 people in many of those same cities.
DWS’s fiscal year 2020 revenue was approximately US$121 million.
The transaction is expected to close in December 2020, subject to closing conditions, including regulatory approvals. DWS shareholders will also need to approve the deal.
HCL Acquires DWS: Growing The Local Ecosystem
Michael Horton, executive vice president & country manager, Australia & New Zealand, HCL Technologies, commented on the deal:
“We are excited for this expansion of HCL Technologies in Australia and New Zealand, and are confident that our combined strengths will further accelerate the digital transformation journeys of our clients and innovations for their end customers. HCL has invested in the region for over 20 years and is committed to enabling digitalization and growing the local ecosystem. DWS has forged a sterling reputation, powered by highly talented consultants who enable organizations to be at the cutting edge of technology. We look forward to welcoming the DWS team to HCL and creating enhanced global learning and career opportunities for them.”
Danny Wallis, CEO and managing director, DWS, added:
“We are delighted the DWS team is joining HCL. As a leading name in the global technology industry, and with over 150,000 employees across 49 countries, they bring best in class technology capabilities, global scale and a wide network of clients and partners across industries. This acquisition represents an outstanding outcome for all DWS stakeholders: shareholders, employees, clients and other business partners.”
HCL’s M&A History
This is at least HCL’s fourth acquisition in recent history.
In June 2018, the company acquired German IT service provider and SAP partner H&D International Group for a reported US $34.7 million. In December 2018, HCL paid $1.8 billion for selected IBM software businesses including some classic Lotus Notes, Domino, and Tivoli products.
In March 2019, the company bought Seattle-based digital transformation consulting firm Strong-Bridge Envision (SBE).