HCL Tech to buy German automotive services firm ASAP for $280 million

Reuters Updated - July 13, 2023 at 11:07 AM.

Founded in 2010, ASAP Group serves top automotive original equipment manufacturers and tier-1 suppliers in Germany

Indian IT services major HCLTech said late on Wednesday it will buy German automotive engineering services firm ASAP Group for an enterprise value of about 251 million euros ($279.83 million) as it looks to grow in the automotive space.

HCLTech would leverage the acquisition for further expansion into automotive markets in Europe, the Americas and Japan, the company said in a stock exchange filing.

Founded in 2010, ASAP Group serves top automotive original equipment manufacturers and tier-1 suppliers in Germany. Its portfolio includes software development, consulting services and vehicle development the statement added.

The announcement comes after HCLTech reported a weaker-than-expected June-quarter result as its technology and telecom clients cut discretionary spending amid global macroeconomic uncertainties.

The company's net profit rose 7.65 per cent to ₹3,534 crore in the quarter ended June 30, but missed analysts' average estimate of ₹3,817 crore, according to Refinitiv IBES data.

Published on July 13, 2023 05:37

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