HCL Technologies shares hit new high on plans to acquire Australian IT firm DWS

HCL Technologies share price hit record high on BSE on September 21 after the company announced plans to acquire IT company DWS Limited.

HCL Technologies on September 21 announced its intent to acquire DWS Limited, an Australian IT, business and management consulting group. 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 company said in an exchange filing.

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

The stock was trading at Rs 843.50, up Rs 32.40, or 3.99 percent. It hit record high of Rs 848 per share on BSE.

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,” said Michael Horton, Executive Vice President & Country Manager, Australia & New Zealand, HCL Technologies.”

HCL Technologies is planning to double headcount in smaller towns, including fresh hires and relocation of existing employees over a two-three year period, CEO C Vijayakumar said. The smaller towns in focus include Lucknow, Madurai, Nagpur and Vijayawada and the company already has close to 10,000 employees working in these places, The Economic Times reported.

Jyoti Roy, DVP- Equity Strategist, Angel Broking is positive on the stock’s growth prospects. “We continue to maintain our positive outlook on HCL Tech as the announcement reflects the company’s leadership position in the cloud migration space. We believe that HCL will be the biggest beneficiary of migration from public cloud to hybrid cloud driven by a strong presence in the Infrastructure management business,” Roy said.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.