HCL Technologies (HCLTech) has entered into a definitive agreement to acquire the Telco Solutions business of Hewlett Packard Enterprise (HPE), marking a strategic move to strengthen its capabilities in telecom engineering, AI-led networking, and next-generation digital infrastructure.
This acquisition underscores HCLTech’s focus on helping global Communication Service Providers (CSPs) transform into agile, technology-driven organizations.
Strengthening Telecom and AI-Led Capabilities
The primary objective of the acquisition is to enhance HCLTech’s engineering and AI-powered network offerings for telecom operators worldwide. By integrating HPE’s Telco Solutions business, HCLTech aims to expand its depth and scale in the telecom domain.
The deal is expected to:
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Broaden HCLTech’s telecom portfolio, adding advanced engineering, cloud-native, and AI-driven solutions.
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Accelerate telco-to-techco transformation, enabling operators to modernize 5G networks, adopt Network-as-a-Service (NaaS) models, and deploy AI-led autonomous networking.
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Enable network monetization and automation, with platforms that support closed-loop AI automation and manage connectivity for over 1 billion devices across more than 200 global deployments.
Deal Structure and Financial Details
Unlike a traditional acquisition of a company, this transaction is structured as an asset carve-out, where HCLTech will acquire specific assets and operations of HPE’s Telco Solutions business rather than purchasing equity in a legal entity.
Key financial highlights include:
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Total deal value: Up to US$160 million
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Payment mode: 100% cash consideration
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Performance-linked incentives: US$15 million tied to FY2025 performance
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Related party transactions: None involved
This structure allows HCLTech to directly integrate technology assets, platforms, and talent into its existing global operations.
Intellectual Property and Talent Integration
A major value driver of the acquisition lies in the transfer of specialized intellectual property and skilled professionals.
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Intellectual Property: HCLTech will gain access to industry-leading platforms and R&D expertise in critical telecom areas such as Operations Support Systems (OSS), Home Subscriber Server (HSS), and 5G Subscriber Data Management (SDM).
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Talent Addition: Around 1,500 telecom specialists, including employees and contractors, will join HCLTech across 39 countries, strengthening its global delivery and innovation capabilities. These professionals are spread across key markets including India, France, Spain, Japan, and the Americas.
Regulatory Approvals and Timeline
The completion of the acquisition is subject to customary regulatory approvals across multiple jurisdictions. A key approval required is from the Committee on Foreign Investment in the United States (CFIUS).
The transaction is expected to close within approximately six months from the signing date of December 18, 2025, following the receipt of necessary approvals.
