Volvo to divest extenal IT business & outsource IT infrastructure ops to HCL Technologies
HCL Technologies announced that HCL Technologies ('HCL') has entered into a Letter of Intent with the Volvo Group for undertaking an outsourcing engagement for its IT infrastructure and operations services. The total Contract Value which is for five years is not disclosed.In addition, HCL would be acquiring from the Volvo Group, its external IT business relating to provision of IT infrastructure, mainframe services and application operation services for an all cash consideration of SEK 1.1 Billion (USD138 million). Volvo Group derived revenue of SEK 1.6 Billion (USD190 million) from external customers during last twelve months.
The above would be subject to the parties entering into binding agreement(s) and the regulatory approvals. The transaction is expected to close in second quarter of 2016.
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