Indian IT services provider HCL Technologies Ltd has signed an agreement with Tokyo-based NEC Corporation to sell its entire 49 per cent stake in its joint venture, NEC HCL Systems Technologies (NHST), for $12 million in cash, according to a stock market disclosure.
The company said that the agreement is subject to customary closing conditions.
Noida-based HCL formed the joint venture with NEC in 2005. HCL and NHST have been providing engineering solutions in embedded software, hardware design, network and security, high performance computing and mobile technologies to NEC and its subsidiaries. The joint venture reported revenue of $18.7 million and net profit of $2.9 million for fiscal ended March 2012.
HCL is primarily engaged in providing a range of outsourcing services, business process outsourcing and information technology infrastructure services. It is the fourth largest IT firm in India and is ranked 48 in the global list of IT services providers. It is one of the seven companies in India with revenues of more than $4.5 billion, market capitalisation of more than $5 billion and a compounded annual growth rate greater than 25 per cent during the past five years.
NEC Corp. is a Japanese IT services and product company providing network solutions to business enterprises, communications services providers and government agencies. The company was known as the Nippon Electric Company Ltd, before rebranding in 1983 as NEC.