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HCL Tech acquires HCL Enterprise Solutions

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CIOL Bureau
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NEW DELHI: HCL Technologies has announced the acquisition of the last tranche 16.33 percent stake in HCL Enterprise Solutions (HES), from Computech Corporation, making the company its fully owned subsidiary. HCL Tech acquired HES through its wholly owned subsidiary HCL Technologies (Bermuda) Ltd (HCLB). HCL has now completely taken over the JV, which will henceforth be solely owned and managed as HCL Technologies (Illinois) Inc. (HCLTI) from Illinois, US.






HES was set up as a 51:49 JV between HCL Technologies and Computech Corporation in 2001, to focus on the enterprise application integration (EAI) market. In line with the JV agreement covenants, HCL Technologies acquired through HCLB further stakes of 16.33 percent each in September 2002 and October 2003. With the acquisition of the last tranche of 16.33 percent now, HES has become a wholly owned subsidiary of HCL Technologies.





Incumbent VP and HCL Global Oracle Practice head Ravi Reddy will take over from CEO Venkat Davarapalli since the inception of the JV.





According to the press release, the acquisition has enabled HCL to gain a strong onsite presence in the US ERP market and the company is leveraging this onsite capability to provide end-to-end ERP solutions to several Fortune 2000 companies. HCL also proposes to leverage HCL TI's strengths to enhance its presence and offerings in the Peoplesoft and SAP domains.










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