HCL Info picks up 60% in Dubai's NTS for Rs 30 cr

NEW DELHI: IT hardware company HCL Infosystems has picked up 60% stake in the Dubai-based IT services and solutions provider NTS Group for close to Rs 30 crore, it said on Thursday.

The acquisition will give the Delhi-based company access to a larger customer base and help expand services portfolio in the Middle East and African markets. HCL Infosystems will fund the acquisition through internal accruals.

“The acquisition is part of our strategy to go global. Although we have a small presence in the Middle East and African markets currently, NTS will become our beachhead in addressing these markets on a larger scale,” said HCL Infosystems’ executive vice-president George Paul.

NTS is a six-year old privately-held organisation that provides IT hardware and software services to a host of business houses across Dubai, Abu Dhabi, UAE and Qatar. Its clients include Etisalat, Emaar, Dubai Police, Commercial Bank and Emirates Airlines among others.

NTS Group is owned by a group of four Dubai-based businessmen.
A number of Indian IT companies have started looking at the Middle East and African regions aggressively as these markets are growing at 12-13% annually.

Wipro, for instance, started its operations in the Middle East in 2001 and has built a strong presence in the region. India’s one of the largest software company Infosys, too, is looking at expanding operations in the region through the organic and inorganic routes.

Post acquisition, HCL Infosystems will augment NTS’ existing Dubai business with its system integration, product, services and solutions portfolio to further grow the business, the company said in a statement.