Software services company HCL Technologies Ltd said on Friday it will acquire products and services built on Cisco Systems Inc.’s self-optimizing network technology for almost $50 million (Rs 378.5 crore) in cash.
The acquisition will help HCL meet the growing needs of its customers in the telecommunications industry as the technology has become a major component in the move towards 5G networks, the company said in a statement.
Cisco’s self-optimizing network technology uses machine learning and a set of applications to automate the Radio Access Network, HCL said.
HCL also said that the assets it is buying provide automation technology to make the planning, configuration and management of radio networks simpler and faster.
Sukamal Banerjee, corporate vice president at HCL, said the products and services the company is buying will help it expand its footprint in the telecom industry as it moves towards adopting 5G networks.
The Cisco business unit is based in San Jose, California, and has offices in Israel and India. As part of the deal, some employees who work in this business unit will move to HCL.
The Indian company expects to complete the transaction by January 2021.