HCLTech share price falls despite $160-million deal to acquire HPE’s Telco Solutions business

HCLTech share price: Shares of global technology HCL Technologies, or HCLTech, declined on Friday, December 19, after the company announced that it will purchase Hewlett Packard Enterprise's Telco Solutions Business of Hewlett Packard Enterprise for USD 160 million, including USD 15 million of incentives based on the FY25 performance.

The stock was trading 0.11% lower at 1,659.5 per unt on the NSE at 9:43 am.

In an exchange filing, the company said, "HCLTech to acquire Telco Solutions Business from Hewlett Packard Enterprise (HPE) to further strengthen its engineering and AI-led network propositions to global communication service providers."

Following an earlier transaction with HPE in 2024, HCLTech will, through this new acquisition agreement, further gain intellectual property (IP), product engineering and R&D talent, and client relationships with top global Communication Service Providers (CSPs).

Telco Solutions supports over one billion devices through its solutions, across 200-plus deployments globally. It allows Operations Support Systems, Home Subscriber Server and 5G Subscriber Data Management, with advanced artificial intelligence-led closed-loop network automation for seamless network monetisation, the release added.

Telco Solutions was formerly part of HPE's Communications Technology Group (CTG), from which HCLTech acquired certain assets in 2024.

The previously acquired CTG portfolio, spanning business support systems, network applications, data intelligence and service cloudification, has been successfully integrated and is now growing, the Noida-headquartered company said.

HCLTech will leverage this expanded capability to accelerate network transformation, Network as a Service (NaaS) and AI-led autonomous networking.

Notably, as part of this deal, nearly 1,500 engineering and telecom specialists from 39 countries will join the global delivery team of HCL Technologies to help scale the business.

This transaction is subject to regulatory nods and other customary closing conditions and is expected to close in about six months.

"We are 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 telecom, media, publishing & entertainment and technology (TMT) at HCLTech, said.