HCL Technologies, the third largest software services company has now announced that it is acquiring the select IBM software products for the $1.8 Billion. The acquisition which is the largest in the history of the HCL, is expected to be close by the first half of 2019.
The products which represent a total addressable market of more than $50 billion include the Appscan for secure application development, Unica for marketing automation, Commerce for the omnichannel eCommerce, Notes & Domino for email and low code rapid application development, BigFix for secure device management and Connection for work stream collaboration and integration.
The President and CEO of HCL Technologies, C Vijayakumar said that the products which HCL is acquiring are in large growing market areas like the ecommerce, marketing, and security which are also strategic segments for the company.
“The large-scale deployments of these products provide us with a great opportunity to reach and serve thousands of global enterprises across a wide range of industries and markets. I am confident that these products will see good growth trajectory backed by our commitment to invest in product innovation coupled with our strong client focus and agile product development. In addition, we see tremendous potential for creating compelling ‘as-a-service’ offerings by combining these products with our Mode-1 and Mode-2 services,” he added.
HCL and IBM have an ongoing IP Partnership for five of these products.
“Over the last four years, we have been prioritizing our investments to develop integrated capabilities in areas such as AI for business, hybrid cloud, cybersecurity, analytics, supply chain and blockchain as well as industry-specific platforms and solutions including healthcare, industrial IOT, and financial services. These are among the emerging, high-value segments of the IT industry. As a result, IBM is a leader in these segments today,” said John Kelly, IBM senior vice president, Cognitive Solutions and Research. “We believe the time is right to divest these select collaboration, marketing and commerce software assets, which are increasingly delivered as stand-alone products. At the same time, we believe these products are a strong strategic fit for HCL, and that HCL is well positioned to drive innovation and growth for their customers,” he added.
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