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

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

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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