HCLTech to Expand its Telecom Portfolio With $160 Million Acquisition of HPE Unit

A final agreement has been reached by HCL Technologies (HCLTech) to purchase the Telco Solutions division from Hewlett Packard Enterprise (HPE) for a maximum consideration of $160 million. The company stated in a stock exchange statement on 18 December that the deal is set up as an all-cash asset carve-out.

A $15 million incentive based on performance measures for the fiscal year 2025 is added to the initial purchase price as part of the contract. Subject to usual closing conditions and regulatory clearances, such as permission from the Committee on Foreign Investment in the United States (CFIUS), the transaction is anticipated to close in about six months.

How Acquisition will Benefit HCLTech?

This most recent acquisition includes HPE's Telco Solutions division, which presently serves over 1 billion devices across 200 global installations, building on a 2024 deal in which HCLTech acquired assets from HPE's Communications Technology Group (CTG). The company's official statement claims that the acquired company offers a wide range of capabilities, such as AI-driven network automation intended for closed-loop network monetisation, 5G Subscriber Data Management (SDM) and Home Subscriber Server (HSS), and Operations Support Systems (OSS).

HCLTech plans to use the increased engineering capacity and intellectual property to speed up 5G network transformation, network cloudification, autonomous networking, Network as a Service (NaaS), Service Management and Orchestration (SMO), AI-led network automation, and AI-native networks for international CSPs, according to the official company statement.

A strategic Move of HCLTech

The company is very excited about the opportunity ahead, as HCLTech is uniquely positioned to empower CSPs to realise their transformation into true technology companies—advancing the shift from telcos to techcos. Anil Ganjoo, Chief Growth Officer and Global Head of TMT at HCLTech, described the move as a strategic one.

By incorporating this highly qualified HPE team and their established intellectual property, HCLTech's product-aligned business is strengthened, and its transition to higher-value, IP-led services and non-linear growth is accelerated.

HCLTech has a compelling vision for enabling CSPs that will leverage the Telco Solutions business's momentum and track record of customer success to further accelerate innovation and customer impact, according to Rami Rahim, Executive Vice President and General Manager of Networking at HPE, who spoke about the industry impact. HPE is sure that HCLTech will be the ideal place for its clients and employees to maintain their success for many years to come.