HCL Technologies (HCLTech) has announced a definitive agreement to acquire the Telco Solutions business from Hewlett Packard Enterprise (HPE) for a total consideration of up to $160 million. The transaction is an all-cash asset carve-out, with an initial purchase price and a $15 million incentive based on performance metrics for the 2025 fiscal year. The acquisition is expected to close in approximately six months, subject to regulatory approvals.
The acquired business provides a range of capabilities, including Operations Support Systems (OSS), 5G Subscriber Data Management (SDM), and AI-driven network automation. HCLTech plans to use the expanded engineering capacity and intellectual property to accelerate 5G network transformation, network cloudification, and autonomous networking for global communication service providers (CSPs). The company aims to empower CSPs to transform into technology companies, advancing the shift from telcos to techcos.
The acquisition is seen as a strategic move by HCLTech, which has a compelling vision for enabling CSPs. The company believes that the integration of the HPE team and their market-proven IP will strengthen its product-aligned model and accelerate its shift toward higher-value, IP-led services and non-linear growth. Anil Ganjoo, Chief Growth Officer and Global Head of TMT at HCLTech, stated that the company is uniquely positioned to empower CSPs to realize their transformation into true technology companies.
The acquisition is also expected to have a positive impact on the industry, with Rami Rahim, Executive Vice President and General Manager of Networking at HPE, stating that HCLTech has a compelling vision for enabling CSPs and will harness the Telco Solutions business’s momentum and track record of customer success to further accelerate innovation and customer impact. The acquisition builds on a previous transaction between HCLTech and HPE in 2024, where HCLTech purchased assets from HPE’s Communications Technology Group (CTG). The deal is expected to close in six months, subject to customary closing conditions and regulatory approvals.