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HCL Technologies has announced a major acquisition in the telecom space by agreeing to buy Hewlett Packard Enterprise Telco Solutions business for up to USD 160 million, a move aimed at strengthening AI driven networks, cloud native services, and global telecom capabilities.
The deal strengthens AI driven network and cloud native telecom offerings.
New Delhi: HCL Technologies has revealed plans to acquire the Telco Solutions business of Hewlett Packard Enterprise in an all cash transaction valued at up to USD 160 million. The deal marks another decisive step by the Indian IT major to deepen its presence in the global telecom technology space. A portion of the transaction value includes performance linked incentives tied to the financial year 2025, reflecting confidence in future growth prospects.
The Telco Solutions business brings with it a strong portfolio of telecom focused software and platforms. These solutions currently support more than one billion devices across over two hundred deployments worldwide. The business plays a critical role in enabling core telecom functions such as Operations Support Systems, Home Subscriber Server, and advanced subscriber data management for fifth generation networks. Artificial intelligence driven automation is a central feature, allowing telecom operators to optimise performance and unlock new revenue streams.
HCLTech stated that the acquisition will significantly strengthen its engineering capabilities along with its artificial intelligence and cloud native network offerings. By adding these assets, the company aims to provide communication service providers with more integrated and future ready solutions. The focus is on helping telecom operators transition toward highly automated and intelligent networks that can scale efficiently and respond quickly to changing customer demands.
This is not the first time HCLTech has worked closely with HPE in the telecom domain. In 2024, the company had already acquired select assets from HPE Communications Technology Group. That earlier portfolio included business support systems, network applications, cloud based services, and data intelligence tools. According to the company, those offerings have since been successfully integrated and are witnessing steady growth, laying a strong foundation for the latest acquisition.
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A key aspect of the deal is the addition of nearly fifteen hundred skilled professionals to HCLTech workforce. These engineers and telecom specialists come from thirty nine countries and will join the company global delivery network. Their expertise in product engineering, research, and development is expected to accelerate innovation while also strengthening relationships with leading global communication service providers.
With this expanded capability, HCLTech plans to push deeper into next generation offerings such as Network as a Service and autonomous networking. Artificial intelligence will play a central role in enabling closed loop automation, predictive maintenance, and smarter service orchestration. The company sees these areas as high growth segments where telecom operators are increasingly investing to modernise infrastructure and improve efficiency.
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The transaction is subject to regulatory approvals and other customary closing conditions. HCLTech expects the acquisition process to conclude within approximately six months. Once completed, the company will gain additional intellectual property, established client relationships, and proven platforms that align with its long term strategy of delivering high value, IP driven services.
Senior leadership at HCLTech highlighted that the acquisition aligns with its broader vision of helping communication service providers evolve beyond traditional telecom operations. The company aims to support their transformation into technology driven enterprises that can innovate faster, monetise data more effectively, and compete in an increasingly digital ecosystem. Integrating the HPE team and their market tested solutions is expected to accelerate this shift and unlock non linear growth opportunities.
