<p>HCL Technologies has finally grabbed the opportunity thrown open by Swedish commercial vehicles major Volvo Group to buy its external IT business for $138 million (around Rs 896 crore) in an all-cash deal.<br /><br /></p>.<p>In a regulatory filing with the BSE, HCL Technologies said that it will be “acquiring from the Volvo Group its external IT business relating to provision of IT infrastructure, mainframe service and application operation services for an all-cash consideration of SEK 1.1 billion ($138 million)”.<br /><br />The Volvo Group and HCL have signed a Letter of Intent, awaiting the signing of the final contract. The transaction is to be closed during the second quarter of 2016 and will provide both cost savings and a capital gain, Volvo Group said in a statement from Stockholm.<br /><br />As part of the deal, Volvo Group will also outsource its IT infrastructure operations to HCL Technologies for an undisclosed contract value for five years.<br /><br />Commenting on the development, Volvo’s CFO and Acting President and CEO Jan Gurander said he is convinced that this will benefit personnel, suppliers, and customers.<br /><br />Approximately 2,600 Volvo personnel globally will be affected by the transaction. They will be given the option to move over to HCL Technologies and will continue to work closely with their colleagues in Volvo’s IT services division.<br /><br />In conjunction with the closing, the Volvo Group’s operating income and net financial debt are expected to be positively impacted by about SEK 900 million.</p>
<p>HCL Technologies has finally grabbed the opportunity thrown open by Swedish commercial vehicles major Volvo Group to buy its external IT business for $138 million (around Rs 896 crore) in an all-cash deal.<br /><br /></p>.<p>In a regulatory filing with the BSE, HCL Technologies said that it will be “acquiring from the Volvo Group its external IT business relating to provision of IT infrastructure, mainframe service and application operation services for an all-cash consideration of SEK 1.1 billion ($138 million)”.<br /><br />The Volvo Group and HCL have signed a Letter of Intent, awaiting the signing of the final contract. The transaction is to be closed during the second quarter of 2016 and will provide both cost savings and a capital gain, Volvo Group said in a statement from Stockholm.<br /><br />As part of the deal, Volvo Group will also outsource its IT infrastructure operations to HCL Technologies for an undisclosed contract value for five years.<br /><br />Commenting on the development, Volvo’s CFO and Acting President and CEO Jan Gurander said he is convinced that this will benefit personnel, suppliers, and customers.<br /><br />Approximately 2,600 Volvo personnel globally will be affected by the transaction. They will be given the option to move over to HCL Technologies and will continue to work closely with their colleagues in Volvo’s IT services division.<br /><br />In conjunction with the closing, the Volvo Group’s operating income and net financial debt are expected to be positively impacted by about SEK 900 million.</p>
