HCL Technologies to buy IBM's software products

Business 12/7/2018, 6:21 AM
HCL Technologies to buy IBM's software products

IBM announced it has reached a definitive agreement with HCL Technologies Ltd. on the acquisition of the American company's software products for $1.8 billion. The transaction is expected to close by the second half of 2019 and is subject to regular regulatory approval.

"The products that we are acquiring are in large growing market areas like Security, Marketing and Commerce which are strategic segments for HCL," C Vijayakumar, the CEO of the Indian company said.

The divestment of the software assets is a part of IBM's decision to focus on what it believes are "emerging, high-value segments of the IT industry." Earlier, the company announced it is buying Red Hat and combining it with its own cloud business in a push to develop "hybrid cloud" technology as part of the same strategy.

Breaking the News / MD

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