BENGALURU: HCL TechnologiesNSE -0.83 %said the company last month closed acquisition of 7 IBM products last month for security, marketing, commerce, and digital solutions. In December, the company announced its plans to acquire IP assets of technology major IBM including its email Lotus notes for $1.8 billion.
As part of the closure of this deal, HCL techtakes full ownership of the research and development, sales, marketing, delivery, and support for AppScan, BigFix, Commerce, Connections, Digital Experience (Portal and Content Manager), Notes Domino, and Unica, said the company in a press release.
HCL Tech has also spun out a separate business unit to focus on products.
“HCL is formally introducing HCL Software, a new division that will operate this enterprise software product business and meet customer demand,” said the company.
A part of the “Products and Platforms” (Mode 3), HCL Software has delivered more than 340 partner releases and more than 90 HCL releases.
Analysts widely said the impact of IBM products on HCL Tech’s revenue would be seen later this fiscal. The $8.63 billion IT services major guided a 14-16% revenue growth in FY20 with a cautious operating margin projection.
As the third largest Indian IT services reinforces its focus on IP-led business with IBM products, C Vijayakumar, President & CEO, HCL Tech, said it has “a tremendous potential for creating compelling ‘as-a-service’ offerings by combining these products with traditional IT and next generation services”.
“We are excited for the next phase of the HCL Software Business Unit and are confident that these products will see good growth trajectory backed by our commitment to invest in product innovation coupled with our strong client focus and agile product development,” said Vijayakumar.