HCL Acquires IBM Products, Stock Drops 5%

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HCL is the third largest software services firm in the country, and recently it started acquiring select IBM products in a deal of about $1.8 billion which took a surprising turn of events with the HCL stock price dipping about 4.98 percent and ending up at a stock value of Rs 961.55 on BSE. On NSE, the stock value dipped 5 percent to close at Rs 961.9. During the trading session, the scrip had touched a low of Rs 934.95 and a high of Rs 1000. All this happened after the company said it is acquiring IBM products for $1.8 billion. The software products that are being acquired have an estimate marketing scope of 50 billion dollars making it quite an attractive deal. The company is expected to buy out by mid 2019 and planning to provide the amount by the cash in stock, and borrowing about 300 million dollars.

The deal is supposed to be the largest acquisition in the history of deal making in HCL and
supposed to close in mid 2019. HCL is acquiring namely – Appscan for secure application
development, BigFix for secure device management, Unica for marketing automation, Commerce for omni-channel eCommerce, Portal for digital experience, Notes & Domino for email and low-code rapid application development, and Connections for workstream collaboration.

With this HCL is said to make big strides in the security, marketing, and commerce section thereby increasing its stake in the business market and reaching out to a wider industry and companies.


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