Noida-based IT company HCL Technologies (HCL) said it would acquire DWS Limited, an Australian IT, business and management consulting group.
The acquisition of DWS will enhance HCL’s contribution to digital initiatives in Australia and New Zealand while strengthening HCL’s client portfolio across key industries.
About HCL Technologies
HCL Technologies is a next-generation global technology company that helps enterprises reimagine their businesses for the digital age.
It provides a wide range of IT services including digital transformation, application development and support, programme and project management and consulting.
HCL delivers holistic services across industry verticals to leading enterprises, including 250 of the Fortune 500 and 650 of the Global 2000.
Employee Base of HCL
HCL currently employs 1600 people in major cities, including Canberra, Sydney, Melbourne, Brisbane, and Perth.
About DWS
HCL currently employs 1600 people in major cities, including Canberra, Sydney, Melbourne, Brisbane, and Perth.
DWS Performance
The DWS Group had revenues of A$ 167.9 million in financial year 2020. The acquisition of DWS will strongly enhance HCL’s contribution to digital initiatives in Australia and New Zealand
The shareholders of DWS will also get a dividend of 0.03 Australian dollars per share which was declared by the company in its recent announcement of annual corporate earnings for FY20 (June-end)
Comment from Senior Member
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 digitilisation and growing the local ecosystem, Michael Horton, Executive Vice President & Country Manager, Australia & New Zealand, HCL Technologies
Shares Acquisition Price
The cost of acquisition or the price at which the shares are acquired is fixed at A$1.20 per share and a total equity value pay-out will be made at A$158.2 million after considering a total number of shares at 131.83 million on a fully diluted basis.
Transaction Clearance
The transaction is expected to close in December 2020, subject to closing conditions, including regulatory approvals.
Share Market Impact
HCL Technologies share price hit record high on BSE on September 21.
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.
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