HCL Tech scales record high on plan to acquire DWS
HCL Tech scales record high on plan to acquire 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 HCLs contribution to Digital initiatives in Australia and New Zealand while strengthening HCLs 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).