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Thursday, October 22, 2020

HCL Technologies to acquire Australian IT solutions firm DWS Ltd

In a regulatory filing, HCL Technologies said the total equity value pay-out will be 158.2 million Australian dollars (about Rs 850.33 crore) after considering a total number of shares at 131.83 million on a fully diluted basis.

By: PTI | New Delhi | September 21, 2020 11:43:54 am
The HCL Technologies LTD. Jigani campus stands deserted in Bengaluru, India, on Wednesday, May 27, 2020. (Photographer: Samyukta Lakshmi/Bloomberg)

HCL Technologies on Monday said it will acquire Australian IT solutions firm DWS Ltd, a move that will help the Indian company strengthen its position in the Australia and New Zealand market.

In a regulatory filing, HCL Technologies said the total equity value pay-out will be 158.2 million Australian dollars (about Rs 850.33 crore) after considering a total number of shares at 131.83 million on a fully diluted basis.

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), it added.

“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,” HCL said in a statement.

The filing said acquisition will be done by a process of Scheme of Arrangement to be approved by the court(s) in Australia, and the deal will also be subject to the approvals of Australia’s Foreign Investment Review Board, Australian Competition Commission and New Zealand’s Overseas Investment Office.

Besides, the transaction – being done by HCL Australia Services Pty Ltd (wholly owned step-down subsidiary of HCL Technologies) – will also require an approval of DWS shareholders, it added.

The acquisition is expected to close in December 2020 after regulatory approvals.

DWS has over 700 employees and offices in Melbourne, Sydney, Adelaide, Brisbane, and Canberra. With FY20 revenue at 167.9 million Australian dollars, the company provides a wide range of IT services including digital transformation, application development and support, program and project management and consulting.

“This acquisition represents an outstanding outcome for all DWS stakeholders: shareholders, employees, clients and other business partners,” Danny Wallis, CEO and Managing Director of DWS, said.

HCL Technologies currently employs 1,600 people in major cities, including Canberra, Sydney, Melbourne, Brisbane, and Perth.

“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 Technologies Executive Vice President and Country Manager, Australia and New Zealand Michael Horton said.

He added that HCL has invested in the region for over 20 years and is committed to enabling digitalisation and growing the local ecosystem.

Shares of HCL Technologies were trading at Rs 843.65, up 4.01 per cent on the BSE.

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