HCLTech to buy telco solutions business from HPE

HCLTech, India’s third-largest IT services firm, on Thursday announced that it has signed an agreement to purchase the telco solutions business of US-headquartered Hewlett Packard Enterprise (HPE) for up to $160 million (about Rs 1,440 crore) in cash.

The deal is structured as an asset carve-out, including $15 million in incentives based on its 2024-25 performance, with the transaction expected to be completed in six months. The acquisition follows the service provider’s $225 million asset purchase from HPE’s communication technology group in December 2024.

As part of the agreement, nearly 1,500 engineering and telecom specialists will join HCLTech’s global delivery team.


This is HCLTech’s second acquisition in 2025, after the company transferred Nuance's Enterprise Professional Services business as part of an extended partnership with Microsoft in January. Major Indian IT firms accelerated their acquisition activity this year after a two-year lull, mostly covering capability-driven areas such as artificial intelligence, software products and engineering services.

“Integrating this highly skilled HPE team and their market-proven IP (intellectual property) strengthens our product-aligned model and accelerates our shift toward higher-value, IP-led services and non-linear growth,” said Anil Ganjoo, chief growth officer and global head of telecom, media, publishing & entertainment and technology at HCLTech.

The acquisition is subject to regulatory approvals across countries, including approval from the Committee on Foreign Investment in the US.

“This transaction will yield benefits for CSPs (communication service providers) for many years to come, as both HPE and HCLTech pursue their unique, differentiated approaches to supporting this vital sector of the market,” said Rami Rahim, president and general manager of the HPE networking business.