HCL Technologies inks deal with ASAP Group for about ₹2,300 crore

HCL Technologies has inked an agreement  to buy a 100% stake in the German automotive engineering services company ASAP Group for EUR 251.1 million (about ₹2,300 crore), said the company in an exchange filing on Wednesday.

As per the company's filing, the acquisition is anticipated to be completed by September 2023 through an all-cash transaction through the company's UK subsidiary, subject to regulatory approvals.

In Europe, Germany, and other international markets, HCL Technologies seeks to increase its skills in the automotive engineering services sector, notably in e-mobility, autonomous driving, and connectivity, the company said.

In the areas of connectivity, e-mobility, and autonomous driving, among others, ASAP is concentrated, according to HCLTech. ASAP, a company founded in 2010, collaborates with Germany's leading automotive OEMs and tier-1 suppliers from its Ingolstadt headquarters.

“Core engineering is at the heart of HCLTech’s DNA and it truly differentiates our services portfolio. ASAP has developed some exciting capabilities in automotive engineering, and we share their vision for the future of mobility. This agreement will enable us to scale these capabilities and innovations across our global network,” Corporate Vice President, Engineering and R&D Services at HCL Tech, Hari Sadarahalli said.

Michael Neisen, CEO of the ASAP Group added, "We are delighted to align our growth journey with HCLTech's purpose of bringing together the best of technology and people to supercharge progress for all stakeholders. We are confident that the combination of HCLTech and ASAP's engineering and technology performance will bring best-in-class advantages to the automotive industry worldwide."

On Wednesday, the company reported its Q1FY24 numbers. HCL Technologies' consolidated net profit, which is attributable to shareholders, increased by 7.65% year over year to ₹3,534 crore. Street estimates across parameters were missed by the tech player. The company's PAT for the same quarter a year ago was ₹3,283 crore. Additionally, a 10-rupee interim dividend has been declared by the firm.

HCL Tech Q1 results: Consolidated net profit rises by 7.7% YoY to ₹3,534 crore in Q1; declares dividend