Business

German Automotive Services Firm To Be Acquired By HCL Tech ASAP For $280 Million

HCL Tech, an Indian IT services giant, announced late Wednesday that it will acquire German automotive engineering services provider ASAP Group for an enterprise value of around 251 million euros ($279.83 million) as it seeks to expand in the automotive market.

According to a stock exchange filing, HCL Tech intends to use the acquisition to expand into automotive markets in Europe, the Americas, and Japan.

ASAP Group, founded in 2010, services Germany’s major automotive original equipment manufacturers and tier-1 suppliers.

According to the statement, its portfolio comprises software development, consulting services, and vehicle development.

The announcement comes after HCL Tech announced a weaker-than-expected June quarter result as its technology and telecom clients reduced discretionary expenditure in the face of global macroeconomic uncertainty.

According to Refinitiv IBES statistics, the company’s net profit increased 7.65% to 35.34 billion rupees ($430.91 million) in the quarter that ended June 30, although it fell short of analysts average forecast of 38.17 billion rupees.

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Spriha Rai

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