HCLTech Acquires HPE Telco Solutions

HCLTech, India’s third-largest IT services provider, has signed a definitive agreement to acquire the Telco Solutions Business of Hewlett Packard Enterprise (HPE).

The deal, valued at up to $160 million (approximately ₹1,340 crore), represents a massive step toward HCLTech’s vision of becoming a global leader in AI-led network services and 5G transformation.

The HCLTech board announced the acquisition after market hours on Thursday, December 18, 2025, building on a successful 2024 asset purchase from HPE’s Communications Technology Group (CTG).

HCLTech Deal Structure and Financial Synergy

The transaction is structured as an all-cash asset carve-out, meaning HCLTech is buying the business division rather than corporate shares.

The $160 million total consideration consists of an initial purchase price supplemented by $15 million in performance-linked incentives based on fiscal year 2025 (FY25) metrics.

HCLTech expects an immaterial financial impact on its immediate earnings per share, yet it finds long-term value in the ‘non-linear’ growth potential of the acquired intellectual property (IP).

Strategic Integration: From “Telco” to “Techco”

This acquisition specifically targets the backend “brains” of modern networks.

The acquired portfolio includes critical systems that support more than one billion devices across over 200 global deployments. Key technology areas include:

• Operations Support Systems (OSS): Tools that allow operators to manage and monitor their networks efficiently.
• 5G Subscriber Data Management (SDM): High-speed databases essential for managing user identity and services in 5G environments.
• AI-Led Network Automation: Advanced “closed-loop” systems that use AI to fix network issues and optimize performance without human intervention.

Anil Ganjoo, Chief Growth Officer at HCLTech, emphasized that the move helps Communication Service Providers (CSPs) transition from simple ‘telcos’ into ‘techcos’ that monetize data and digital services.

HCLTech Global Workforce Expansion

A core asset of this deal is the human capital.

Approximately 1,500 specialized engineering and telecom professionals across 39 countries—including India, France, Italy, and Japan—are expected to join HCLTech’s global delivery team.

This infusion of talent significantly deepens HCLTech’s research and development (R&D) capabilities, particularly in cloud-native and AI-native networking.

Market Outlook and Regulatory Road

The deal will close in approximately six months, subject to standard regulatory approvals.

Notably, the transaction requires clearance from the Committee on Foreign Investment in the United States (CFIUS) due to the global nature of the assets and the sensitive infrastructure role of telecom technology.

Industry analysts note that this acquisition builds on the 2024 purchase of HPE’s BSS (Business Support Systems) assets.

This provides HCLTech with an end-to-end software stack that manages everything from billing to 5G radio frequencies.

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