HCL Technologies Ltd, India's fourth-largest software services firm, has acquired Minneapolis-based customer relationship management (CRM) services provider PowerObjects for $46 million (about Rs 300 crore), as per a stock market disclosure.
The deal – HCL's third acquisition this month – will bolster the company's global applications business.
Founded in 1993, PowerObjects provides service, support, education and add-ons for Microsoft Dynamics CRM. As of September 30, PowerObjects had trailing 12-month revenue of about $37 million.
“This acquisition enables HCL to take advantage of the rapidly growing global CRM industry, as Microsoft Dynamics is one of the fastest growing CRM products in the market,” the Indian company said in the statement.
As part of the deal, about 250 employees from PowerObjects will become part of the Noida-based HCL. There will be no change in the existing leadership team of PowerObjects.
“Together, HCL and PowerObjects will now offer one of the largest Microsoft Dynamics practices in North America,” said Greg Palesano, executive vice president and global head of application services at HCL.
The worldwide CRM market is likely to be valued at $36 billion by 2017, growing at 13.3 per cent, according to research firm Gartner Inc.
HCL has been actively pursuing inorganic expansion. Earlier this month, the company signed a definitive agreement to acquire a Bangalore-based engineering services firm, Concept2Silicon Systems Pvt Ltd, for an undisclosed amount.
It also inked a deal to acquire Swedish automaker Volvo’s external IT business for SEK 1.1 billion ($138 million, or nearly Rs 900 crore) in an all-cash deal.
In July, HCL agreed to buy some assets of US-based IT consulting services Trygstad Technical Services for an undisclosed amount.