Companies

HCL to acquire Australian firm DWS for around A$158 m

Our Bureau New Delhi | Updated on September 21, 2020 Published on September 21, 2020

Transaction expected to close in December subject to regulatory approvals

HCL Technologies (HCL) on Monday announced its intent to acquire DWS Limited (DWS), a leading Australian IT, business and management consulting group, for around A$158 million.

The cost of acquisition or the price at which the shares are acquired is fixed at A$1.20 per share and a total equity value pay-out will be made at A$158.2 million after considering a total number of shares at 131.83 million on a fully diluted basis, HCL said in a stock filing.

Also read: HCL Tech up 3% on Australian IT firm acquisition plan

The 100 per cent shares will be acquired through a scheme of arrangement after approval by DWS shareholders, it said.

DWS, with over 700 employees and offices in Melbourne, Sydney, Adelaide, Brisbane, and Canberra, delivers business and technology innovation to large clients across a spectrum of verticals.

The DWS Group had revenues of A$ 167.9 million in financial year 2020. The acquisition of DWS will strongly enhance HCL’s contribution to digital initiatives in Australia and New Zealand while strengthening HCL’s client portfolio across key industries, it said.

HCL currently employs 1,600 people in major cities, including Canberra, Sydney, Melbourne, Brisbane, and Perth. It has been delivering technology solutions to some of the region’s largest companies. The transaction is expected to close in December, subject to closing conditions, including regulatory approvals, it said.

“HCL has invested in the region for over 20 years and is committed to enabling digitilisation and growing the local ecosystem. DWS has forged a sterling reputation, powered by highly talented consultants who enable organisations to be at the cutting edge of technology,” Michael Horton, Executive Vice-President & Country Manager, Australia & New Zealand, HCL Technologies said.

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Published on September 21, 2020
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