HCLTech, the third largest IT company in India, has signed an agreement to acquire a 100% equity stake in a German automotive engineering services provider, ASAP Group, for a total enterprise valuation of USD 279.72 million. The deal is expected to be completed through HCL’s UK-based subsidiary.
The transaction is going to be 100% in cash and likely to be close in September 2023, said a regulatory filing on BSE made by the company.
The acquisition will enable the IT company to scale up its global leadership in engineering services by strengthening its advanced technology capabilities. Furthermore, it will facilitate the company’s expansion in the growing markets across Europe, the Americas, and Japan.
ASAP Group, headquartered in Ingolstadt, Germany, is focused on future-oriented automotive technologies in areas such as autonomous driving, e-mobility, and connectivity. The company serves top automotive original equipment manufacturers (OEM) and tier-1 suppliers in Germany. ASAP’s services portfolio comprises electrics/electronics, software, consulting, service testing and validation, and vehicle development. ASAP has over 1,600 employees across nine locations in Germany, according to the press release.
“ASAP has developed exciting capabilities in automotive engineering, and we share their vision for the future of mobility. This agreement will enable us to scale these capabilities and innovations across our global network,” said Hari Sadarahalli, Corporate Vice President, Engineering and R&D Services, HCLTech.
This investment also reinforces HCL’s commitment to Germany, which is a focus market and the firm will continue to nurture local talent and innovation ecosystem to unlock their potential, he further added.
“We are delighted to align ASAP’s growth journey with HCLTech’s purpose of bringing together the best of technology and people to supercharge progress for all stakeholders,” said Michael Neisen, CEO of the ASAP Group.
HCL is not new in the autonomous driving field. In 2018, HCL showcased its interest in the field of IoT and autonomous vehicles, including a platform developed in collaboration with IIT-Madras.
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