In a bold move that sent shockwaves through the tech industry, HCLTech, a prominent IT services company based in India, has made its mark by acquiring a full 100% equity stake in ASAP Group, a leading German automotive engineering services provider. The staggering price tag attached to this transaction amounts to a staggering €251 million ($279.72 million), underscoring the magnitude of this groundbreaking deal.
HCLTech wasted no time in announcing the forthcoming completion of this acquisition through its UK subsidiary, setting the stage for a momentous event expected to be finalized by September 2023. Naturally, this process is subject to regulatory approvals, as outlined by the IT giant in an exchange filing released on a recent Thursday.
The strategic vision behind this acquisition is crystal clear. HCLTech aims to fortify its already impressive portfolio in crucial domains such as autonomous driving, e-mobility, and connectivity. By joining forces with ASAP Group, the IT powerhouse envisions expanding its services into pivotal automotive markets in Europe, the Americas, and Japan. ASAP Group, renowned for its relentless pursuit of cutting-edge automotive technologies, specializes in forward-looking areas like autonomous driving, e-mobility, and connectivity, as explicitly stated by HCLTech. With its inception in 2010 and headquarters nestled in Ingolstadt, ASAP has been instrumental in partnering with esteemed automotive original equipment manufacturers (OEM) and tier-1 suppliers in Germany.
With unbridled enthusiasm, Hari Sadarhalli, Corporate Vice President of Engineering and R&D Services at HCLTech, voiced his excitement for the union, stating, “ASAP has developed some exhilarating capabilities in automotive engineering, and we wholeheartedly share their vision for the future of mobility. This agreement will empower us to amplify these capabilities and innovative breakthroughs across our expansive global network.” Additionally, he emphasized HCLTech’s unwavering commitment to Germany, a core market of focus, highlighting the company’s dedication to nurturing local talent and fostering an innovation ecosystem to unlock unparalleled potential.
Michael Neisen, CEO of ASAP Group, echoed the sentiments of anticipation and optimism, stating, “We are thrilled to align our growth trajectory with HCLTech’s overarching purpose of amalgamating technology and human expertise to fuel progress for all stakeholders. We firmly believe that the convergence of HCLTech and ASAP’s engineering and technological prowess will bestow best-in-class advantages upon the global automotive industry.”