The Hindu Business Line : HCL Tech to acquire Control Point Solutions

New Delhi, Aug. 25 HCL Technologies on Monday announced it has signed an agreement to acquire Control Point Solutions, a provider of voice, data and wireless Telecommunications Expense Management (TEM) services, with the enterprise valuation pegged at $20.8 million.

The actual size of the deal, however, would depend on the adjustment of debt and free cash components which would be determined on the date of transfer, in about a month’s time.

4 delivery centres in US

The privately-held, Control Point Solutions (CPS) plays in the TEM market with platforms catering to both enterprises and carriers across industry verticals. As part of the transaction, HCL Technologies would acquire four delivery centres in US with over 200 professionals.

“This acquisition strengthens HCL Technologies’ advantage of providing multi-service delivery platforms for our customers with CPS’ TEM expertise, complementing HCL Technologies’ remote infrastructure service offering,” a company statement said here.

Control Point Solutions customers include Fortune 500 organisations across a broad variety of industries. Control Point Solutions has managed the entire telecom expense life cycle for clients, providing solutions for their voice, data and wireless requirements.

In line with goal

Commenting on the acquisition, Mr Ranjit Narasimhan, President and CEO, BPO Services of HCL Technologies, said, “The acquisition of Control Point Solutions is in line with HCL BPO’s goal to make strategic, platform-based acquisitions which give us sustainable competitive advantage in chosen verticals. The acquisition enhances HCL’s ability to become an end-to-end provider of business process outsourcing services in the attractive TEM space.”

He said that HCL would leverage its existing experience in TEM to further diversify into other geographies and newer areas such as utilities and freight, amongst others.

Non-linear growth

Elaborating on the acquisition, Mr Anil Chanana, Executive Vice-President, Finance of HCL Technologies, said that the acquisition of Control Point was in continuation of HCL Technology’s strategy to seek non-linear growth opportunity. “This acquisition will further enhance HCL Technologies’s presence in F&A BPO space,” he added.

Langham Capital Ltd acted as financial advisors to HCL Technologies in the transaction. The acquisition is subject to fulfilment of certain closing conditions, the statement added.