HCL Technologies to acquire Australian IT solutions company DWS

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HCL Technologies to acquire Australian IT solutions company DWS

HCL Technologies on Monday mentioned it can acquire Australian IT solutions agency DWS Ltd, a transfer that can assist the Indian company strengthen its place within the Australia and New Zealand market.

In a regulatory submitting, HCL Technologies mentioned the whole fairness worth pay-out might be 158.2 million Australian {dollars} (about Rs 850.33 crore) after contemplating a complete variety of shares at 131.83 million on a totally diluted foundation.

The shareholders of DWS will even get a dividend of 0.03 Australian {dollars} per share which was declared by the company in its current announcement of Annual Corporate Earnings for FY20 (June-end), it added.

“The acquisition of DWS will strongly enhance HCL”s contribution to digital initiatives in Australia and New Zealand while strengthening HCL”s client portfolio across key industries,” HCL mentioned in a press release.

The submitting mentioned acquisition might be carried out by a technique of Scheme of Arrangement to be authorised by the courtroom(s) in Australia, and the deal will even be topic to the approvals of Australia”s Foreign Investment Review Board, Australian Competition Commission and New Zealand”s Overseas Investment Office.

Besides, the transaction – being carried out by HCL Australia Services Pty Ltd (wholly owned step-down subsidiary of HCL Technologies) – will even require an approval of DWS shareholders, it added. The acquisition is anticipated to shut in December 2020 after regulatory approvals.

DWS has over 700 staff and workplaces in Melbourne, Sydney, Adelaide, Brisbane, and Canberra. With FY20 income at 167.9 million Australian {dollars}, the company offers a variety of IT providers together with digital transformation, software improvement and assist, program and undertaking administration and consulting.

“This acquisition represents an outstanding outcome for all DWS stakeholders: shareholders, employees, clients and other business partners,” Danny Wallis, CEO and Managing Director of DWS, mentioned.

HCL Technologies at the moment employs 1,600 folks in main cities, together with Canberra, Sydney, Melbourne, Brisbane, and Perth.

“We are excited for this expansion of HCL Technologies in Australia and New Zealand and are confident that our combined strengths will further accelerate the digital transformation journeys of our clients and innovations for their end customers,” HCL Technologies Executive Vice President and Country Manager, Australia and New Zealand Michael Horton mentioned.

He added that HCL has invested within the area for over 20 years and is dedicated to enabling digitalisation and rising the native ecosystem. Shares of HCL Technologies had been buying and selling at Rs 843.65, up 4.01 per cent on the BSE.

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