HCL acquires a US data analytics product company for Rs 750 crore

HCL America Inc, a wholly-owned step-down subsidiary of the company has acquired the balance 19.6 per cent stake in HCL Technologies SEP Holdings Inc, the sole parent entity of the operating company, Actian Corporation.

HCL already owns an 80.4 per cent stake in the company and is buying out the minority partner who holds the balance 19.6 per cent stake in the company. The cost of acquisition is USD 100.2M (Rs 750 crore) for the remaining 19.6 per cent ownership of HCL Technologies SEP Holdings Inc.

HCL will own 100 per cent of HCL Technologies SEP Holdings, Inc., after the closing of this transaction. This would help HCL in increasing its presence in a high margin, recurring revenue IP business in data analytics, integration and management products. 

This would enable HCL to further reach the global enterprises and harness the value of hybrid data by a combined proposition of HCL’s Mode 2 offerings like Digital Engineering, Cloud Native, Digital and Analytics and IoT Works with Actian’s products. 

Target company - Background 

Actian Corporation is a hybrid data management company, headquartered out of California, US. It was incorporated in 2005 and grew to an end to end data lifecycle product company through a series of acquisitions in the data management integration and analytics space. 

Industry: Data Management, Integration and Analytics Products 

It owns market-leading products like Vector, the world’s fastest columnar database; DataConnect, a hybrid cloud data integration platform; Avalanche, a high-speed analytics platform; and Actian Zen, an embedded database for IoT, amongst others in addition to market leaders like Ingres /ActianX in Hybrid Relational Database Management space. 

Three-year revenue: CY2018 - USD 109.4M, CY2019 - USD 112.7M, CY 2020 - USD 119.0M.  

HCL closed at Rs 1,317, 1.95 per cent up for the day. Other big IT stocks also rallied today with Nifty IT up by 1 per cent up for the day.