HCL Technologies Ltd, India's fourth-largest software services firm, has agreed to acquire UK-based Point to Point Ltd and Point to Point Products Ltd (jointly referred to as Point to Point or P2P) for £8 million (around Rs 78 crore or around $11 million), according to a stock market disclosure.
The deal amount also includes contingent payments subject to certain financial milestones.
With over a decade of experience in the desktop and application virtualisation space, Point to Point provides enterprise workplace transformation services and end-user cloud engineering solutions, including managed serviced desktop services and support for virtualised workplace environment.
The firm is a Microsoft, Citrix and Google Chrome partner and provides support to over 250 organisations in sectors such as media, finance, travel, public sector and automotive.
As part of the deal, about 40 employees from P2P will become part of Noida-based HCL while the existing leadership team of P2P will continue to lead its operations.
As on December 31, 2015, P2P reported revenues of £8.5 million.
“The strengths of HCL and Point to Point create an opportunity for us to drive value and set a new industry benchmark for workplace services. Combining our expertise of designing workplace environment and cloud solutions, with HCL’s vision for the workplace of the future will enable us to eclipse competition with a unique value proposition,” said Sandra Palmer, managing director, Point to Point.
Adding P2P also augments HCL’s capability in virtualised desktop technologies such as Citrix, Microsoft and Lakeside, the statement said.
Meanwhile, HCL has fully acquired its promoter group firm HCL Training and Staffing Services for Rs 2.35 crore.
"This acquisition will enable HCL Technologies to supplement hiring of trained resources...” it said in the statement.
HCL has been actively pursuing inorganic expansion. In October, it acquired Minneapolis-based customer relationship management (CRM) services provider PowerObjects for $46 million (about Rs 300 crore)
At present, HCL operates out of 32 countries and has consolidated revenues of $6.1 billion, as on December 31, 2015.