On Monday, shares of HCL Technologies rose over 4 percent to hit a new all-time high of Rs 848 on BSE after the company announced its intent to acquire DWS Limited, a leading Australian IT, business and management consulting group.
The acquisition will be done by HCL Australia Services Pty. Limited, a wholly-owned step-down subsidiary of HCL Technologies Ltd. As per the agreement, 100 percent shares of DWS will be acquired through a Scheme of Arrangement after approval by DWS shareholders at A$1.20 per share.
The transaction is expected to close in December 2020, subject to closing conditions, including regulatory approvals.
DWS, with over 700 employees and offices in Melbourne, Sydney, Adelaide, Brisbane, and Canberra, delivers business and technology innovation to large clients across a spectrum of verticals. The DWS Group, with revenue at A$ 167.9 million in the financial year 2019-20, provides a wide range of IT services including Digital Transformation, Application development & support, Program & Project Management and Consulting.
"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," the company said in its statement.
"We are excited for this expansion of HCL Technologies in Australia and New Zealand and are confident that our combined strengths will further accelerate the digital transformation journeys of our clients and innovations for their end customers," said Michael Horton, Executive Vice President & Country Manager, Australia & New Zealand, HCL Technologies.
HCL currently employs 1,600 people in major cities, including Canberra, Sydney, Melbourne, Brisbane, and Perth. HCL has been delivering ground-breaking technology solutions to some of the region's largest companies and looks forward to strengthening its unique delivery model and differentiated offerings in the region.
It is the stock's third straight day of gains and was among the top gainers on the Nifty 50 index on Monday.
Shares of the company have been rising since its mid-quarter update on 14 September where it said it expects the revenue and the operating margin for the current September-ended quarter to be "meaningfully better" than the top end of the guidance provided in July 2020.