HCLTech Buys HPE Telco Arm In $160 Million Deal

Amid a telecom tech race, HCLTech is set to acquire HPE’s Telco Solutions, adding 1500 experts and billion-device capabilities to charge 5G ambitions globally.

HCLTech has agreed to acquire Hewlett Packard Enterprise’s Telco Solutions business in a deal valued at up to $160 million. The all-cash transaction aims to strengthen the Indian IT services company’s capabilities in the global telecom sector. It is expected to be completed within the next six months, subject to closing conditions.

Under the agreement, around 1500 specialised telecom and engineering professionals from 39 countries will move to HCLTech. The transition aims to expand delivery capacity and deepen domain expertise across major telecom markets. The purchase price also includes performance-linked incentives of about $15 million tied to FY25 outcomes.

The acquisition builds on an earlier transaction in 2024, when HCLTech bought HPE’s Communications Technology Group. Telco Solutions previously operated within that portfolio.

With this latest move, HCLTech will gain access to critical intellectual property (IP), strong R&D capabilities, and long-standing relationships with other communication service providers worldwide.

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Telco solutions supports more than one billion connected devices through over 200 global deployments. Its offerings cover operations support systems, home subscriber server platforms, and 5G subscriber data management. The business also focuses on AI-driven automation and closed-loop network management to help operators optimise and monetise their networks.

HCLTech said the integration will accelerate its plans in areas such as network as a service, autonomous networks, and large-scale network transformation programmes.

HPE executives added that the transaction would continue to benefit the telecom sector, with both firms pursuing innovation in their respective strategies.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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