IBM and HCL Technologies announced a definitive agreement under which HCL will acquire select IBM software products.
HCL Technologies (HCL) a leading global technology company that helps global enterprises re-imagine and transform their businesses through Digital technology transformation will acquire select IBM software products for $1.8 billion. The transaction is expected to close by mid-2019, subject to completion of applicable regulatory reviews.
“Over the last four years, we have been prioritizing our investments to develop integrated capabilities in areas such as AI for business, hybrid cloud, cybersecurity, analytics, supply chain and blockchain as well as industry-specific platforms and solutions including healthcare, industrial IOT, and financial services. These are among the emerging, high-value segments of the IT industry. As a result, IBM is a leader in these segments today,” said John Kelly, IBM senior vice president. “We believe the time is right to divest these select collaboration, marketing and commerce software assets, which are increasingly delivered as stand-alone products. At the same time, we believe these products are a strong strategic fit for HCL, and that HCL is well positioned to drive innovation and growth for their customers.”
The software products to be acquire by HCL Technologies from IBM
- Appscan for secure application development,
- BigFix for secure device management,
- Unica for marketing automation,
- Commerce for omni-channel eCommerce,
- Portal for digital experience,
- Notes & Domino for email and low-code rapid application development, and
- Connections for work stream collaboration.
C Vijayakumar, President & CEO, HCL Technologies said that they continue to see great opportunities in the market to enhance our Mode-3 (Products and Platforms) offerings. The products that they are acquiring are in large growing market areas like Security, Marketing and Commerce which are strategic segments for HCL. Many of these products are well regarded by clients and positioned in the top quadrant by industry analysts.