HCL Tech Acquires German Automotive Firm ASAP Group To Boost Portfolio And Global Market Reach

13 Jul 2023 , 02:14 PM

HCL Technologies, one of India’s leading IT services firms, has completed the acquisition of a full equity stake in ASAP Group, a German automotive engineering services provider. The acquisition aims to strengthen HCLTech’s portfolio in autonomous driving, e-mobility, and connectivity while expanding its presence in key automotive markets in Europe, the Americas, and Japan.

The transaction, valued at around €251.1 million ($279.72 million), will be completed in cash through HCLTech’s UK subsidiary.  ASAP Group, headquartered in Ingolstadt, Germany, specializes in future-oriented automotive technologies and serves top automotive OEMs and tier-1 suppliers in the country.

The deal is subject to regulatory approvals and is expected to close by September 2023. HCLTech’s Corporate Vice President, Hari Sadarahalli, highlighted the company’s focus on core engineering and shared vision for the future of mobility with ASAP Group.

ASAP Group’s CEO, Michael Neisen, expressed confidence that the combination of their engineering and technology capabilities with HCLTech will bring advantages to the global automotive industry.

HCLTech reported a 7.6 % year-on-year growth in net profit for Q1 of fiscal year 2024, with a sequential decline of 11.2 %. The company’s order book for the quarter amounted to $1.56 billion, lower than its typical range.

The acquisition reinforces HCLTech’s commitment to Germany as a focus market and its dedication to nurturing local talent and innovation ecosystem.

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