HCL Tech to acquire select IBM software products for $1.8 bn; stock down 7%

The stock dipped 7% to Rs 943 on BSE on Friday after the company said it will acquire select IBM software products for $1.8 billion (approximately Rs 127 billion) in an all-cash deal.

Shares of HCL Technologies dipped 6.7% to Rs 943 on BSE in early morning trade on Friday after the company said it will acquire select IBM software products for $1.8 billion (approximately Rs 127 billion) in an all-cash deal.

The company said total investments will be of $1,775 million including earn-out. Approximately, 48% will be paid at close and most of the balance will be paid after the first year. The finance is largely through internal accruals and a debt of $300 million at close.

“IBM and HCL Technologies (HCL) announced a definitive agreement under which HCL Tech