HCL Tech To Acquire German Auto Services Firm ASAP Group

India’s HCL Technologies Ltd. agreed to acquire German automotive engineering services provider ASAP Group at an enterprise value of around 251.1 million euros ($280 million).

The company intends to acquire 100% stake in ASAP via its wholly owned step-down subsidiary HCLTech UK Ltd. in cash, the Indian IT services firm said in a statement.

The acquisition will boost the company’s engineering services by strengthening its advanced technology capabilities in the fast-growing automotive engineering services segment in Europe and other key automotive markets in Americas and Japan, it added.

Headquartered in Ingolstadt, Germany, ASAP is focused on future-oriented automotive technologies in areas such as autonomous driving, e-mobility and connectivity, according to the statement. ASAP’s services portfolio comprises electrics/electronics, software, consulting, service testing and validation and vehicle development, it said.

The company, which has over 1,600 employees across nine locations in Germany, serves top automotive original equipment manufacturers (OEM) and tier 1 suppliers in the country, HCL Tech said.

ASAP’s total turnover stood at 154.3 million euros in the fiscal year ended 31 December 2022, up from 122.5 million euros a year earlier, it noted.

The transaction, subject to relevant regulatory approvals, will likely close by September 2023, according to the statement.

Note: $1 = 0.89789 euros

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