IT Giant HCL Tech Stock Zooms 5% On Mega Deal Worth $2.1 Billion With Verizon

IT giant, HCL Technologies' share price zoomed on Friday after the company signed a new mega deal with Global 100 corporation, Verizon with an estimated new total contract value of $2.1 billion. Traders' optimism was fuelled after HCL Tech said, this deal to have a positive revenue impact on its business over the next six years beginning in November 2023. So far in the current trading session, HCL Tech shares rallied by nearly 5% on BSE.

In early trade of August 11, HCL Tech shares skyrocketed by at least 4.6% with an intraday high of Rs 1186.70 apiece on BSE. Overall, HCL Tech's market cap rose by Rs 14,163 crore in a single-day to Rs 3,22,055.49 crore.

The stock's current market price is at Rs 1167 apiece, rising by Rs 32.40 or 2.9% on BSE, at the time of writing.

On the previous day, the shares stood at Rs 1134.60 apiece with a market value of Rs 3,07,892.44 crore.

As per the regulatory filing on Thursday, Verizon signed a deal, making HCL Tech its primary Managed Network Services (MNS) collaborator in all networking deployments for global enterprise customers, bringing together two global leaders in enterprise networking.

Further, under the agreement, Verizon Business will continue to lead all customer acquisition, sales, solutioning, and overall planning and development with its customers. HCLTech will lead post-sale implementation and ongoing support. To execute the tightly coordinated balance of responsibilities at enterprise scale, a select group of Verizon Business Global Customer Operations staff will transition to HCLTech.

Through the partnership, the duo will offer customers a best-in-class MNS portfolio, a highly digitized experience with data-driven service models, enhanced efficiency and lifecycle management with frictionless interface, a broad end-to-end partner ecosystem, and joint innovation on an integrated platform.

According to HCL Tech, these improvements will help customers navigate increasingly complex operating environments -- across diverse locations, geographies, and devices -- while incorporating new technologies into their stack, including 5G, SD-WAN and SASE capabilities. HCLTech's digital-native MNS platforms and customer interfaces are
designed to help them manage that digitally, quickly, and seamlessly.

On the deal, C Vijayakumar, CEO and Managing Director, HCLTech said, "Our data-driven service delivery, advanced network capabilities and frictionless customer interfaces combined with the unique strengths and resiliency of the Verizon network will enable enterprises to drive better business outcomes and time to market."

While Kyle Malady, CEO, of Verizon Business said, "IT/OT convergence is the future of data-centric business operations, and with the fast-accelerating pace of digitalization, customers need a well-coordinated delivery framework to realize that future."

Verizon Business's global reach and localized enterprise presence together with HCLTech's digitally optimized platforms for MNS give customers a flexible networking framework to build out with new technology and drive more efficient operations.