HCL Technologies (HCL) will acquire select IBM software products for $1.8 billion. The transaction is expected to close by mid-2019 after regulatory approvals.

The software products to be acquired have a total addressable market of $50 billion, according to a press statement. The products include Appscan for secure application development, BigFix for secure device management, Unica for marketing automation, Commerce for omni-channel eCommerce, Portal for digital experience, Notes & Domino for email and low-code rapid application development, and Connections for workstream collaboration.

HCL and IBM have an ongoing Intellectual Property Partnership for five of these products, the statement added.

“We continue to see great opportunities in the market to enhance our Mode-3 (Products and Platforms) offerings. The products that we are acquiring are in large growing market areas like security, marketing and commerce which are strategic segments for HCL. Many of these products are well regarded by clients and positioned in the top quadrant by industry analysts,” said C Vijayakumar, President and CEO, HCL Technologies, said in the statement.

John Kelly, IBM senior vice-president, Cognitive Solutions and Research, said in the statement, “We believe the time is right to divest these select collaboration, marketing and commerce software assets, which are increasingly delivered as standalone products. At the same time, we believe these products are a strong strategic fit for HCL, and that HCL is well positioned to drive innovation and growth for their customers.”

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