New Delhi: HCL Technologies on Thursday announced the acquisition of Hewlett Packard Enterprise’s Telco Solutions business in a deal valued at up to $160 million, as the IT major sharpens its focus on AI-led network transformation and 5G opportunities in the global telecom sector.
The acquisition, structured as an asset carve-out, will be executed through 100% cash consideration and includes up to $15 million linked to performance-based incentives. The transaction is subject to regulatory approvals, including clearance from the Committee on Foreign Investment in the United States (CFIUS), and is expected to be completed within six months.
Telco Solutions, formerly part of HPE’s Communications Technology Group, supports over one billion devices across more than 200 deployments worldwide. Its portfolio spans Operations Support Systems (OSS), Home Subscriber Server (HSS) and 5G Subscriber Data Management (SDM), with capabilities in AI-led closed-loop network automation.
As part of the transaction, nearly 1,500 telecom and engineering specialists across 39 countries will transition to HCLTech, significantly expanding its global delivery and R&D footprint. The deal builds on HCLTech’s earlier acquisition of select CTG assets from HPE in 2024, which the company said have been successfully integrated and are now scaling.
HCLTech said the acquisition will strengthen its offerings in Network-as-a-Service (NaaS), autonomous networking and AI-native networks, enabling communication service providers to accelerate their shift from traditional telco models to technology-driven enterp rises.