HCLTech has acquired the Telco Solutions business from Hewlett Packard Enterprise (HPE) to strengthen its engineering and AI-led network capabilities. The acquisition includes intellectual property, product engineering talent, and client relationships, supporting over 1 billion devices globally. Nearly 1,500 engineering and telecom specialists will join HCLTech, enhancing its offerings for global Communication Service Providers (CSPs).
Acquisition Overview
HCLTech has signed an agreement to acquire HPE’s Telco Solutions business, enhancing its position in the telecom industry. This move builds upon a prior transaction with HPE in 2024.
Strategic Rationale
The acquisition provides HCLTech with:
- Industry-leading intellectual property (IP).
- Product engineering and R&D talent.
- Key client relationships with top global Communication Service Providers (CSPs).
Telco Solutions supports over 1 billion devices through its solutions across more than 200 deployments globally. It facilitates Operations Support Systems (OSS), Home Subscriber Server (HSS), and 5G Subscriber Data Management (SDM), with advanced AI-led network automation.
Expanded Capabilities
HCLTech will leverage the acquired capabilities to accelerate network transformation, Network as a Service (NaaS), and AI-led autonomous networking. Approximately 1,500 engineering and telecom specialists from 39 countries will join HCLTech’s global delivery team.
Financial Details
The total purchase price is up to US$160 million, including $15 million of incentives based upon FY25 performance. The deal is expected to close within approximately six months, subject to regulatory approvals.
HPE’s Perspective
According to Rami Rahim, executive vice president at HPE, this transaction will benefit CSPs and allow both HPE and HCLTech to pursue their strategies in supporting the telecom sector.
About Telco Solutions
The Telco Solutions business delivers telecom solutions and software in OSS and 5G. It offers services in Service Assurance, Orchestration & Fulfillment, Automation Solutions, and Home Subscriber Network (HSS) & Subscriber Data Management (SDM) to leading global Communications Service Providers (CSPs).
Source: BSE