India’s HCLTech to buy German automotive services firm ASAP for $280 million

BENGALURU, July 13 (Reuters) – Indian IT services major HCLTech (HCLT.NS) said late on Wednesday it will buy German automotive engineering services firm ASAP Group for an enterprise value of about 251 million euros ($279.83 million) as it looks to grow in the automotive space.

HCLTech would leverage the acquisition for further expansion into automotive markets in Europe, the Americas and Japan, the company said in a stock exchange filing.

Founded in 2010, ASAP Group serves top automotive original equipment manufacturers and tier-1 suppliers in Germany. Its portfolio includes software development, consulting services and vehicle development the statement added.

The announcement comes after HCLTech reported a weaker-than-expected June-quarter result as its technology and telecom clients cut discretionary spending amid global macroeconomic uncertainties.

The company’s net profit rose 7.65% to 35.34 billion rupees ($430.91 million) in the quarter ended June 30, but missed analysts’ average estimate of 38.17 billion rupees, according to Refinitiv IBES data.

($1 = 82.0130 Indian rupees)

($1 = 0.8973 euros)

Reporting by Ashish Chandra in Bengaluru; Editing by Sohini Goswami

Our Standards: The Thomson Reuters Trust Principles.

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