HCL Tech To Acquire German Engineering Firm ASAP Group In 251 Million Euros Deal

Indian IT services company HCL Tech has announced its plans to acquire German automotive engineering services firm ASAP Group for approximately 251 million euros ($279.83 million).

This move is aimed at expanding HCL Tech's presence in the automotive industry. The acquisition will enable HCL Tech to further penetrate the automotive markets in Europe, the Americas, and Japan, according to a stock exchange filing.

ASAP Group, established in 2010, caters to leading automotive original equipment manufacturers and tier-1 suppliers in Germany. The company offers a range of services including software development, consulting, and vehicle development.

The decision to acquire ASAP Group comes after HCL Tech reported lower-than-expected results for the June quarter.

The company faced challenges due to reduced spending by its technology and telecom clients, who were cautious amidst global macroeconomic uncertainties.

In the quarter ended 30 June, the company's net profit rose to 35.34 billion rupees ($430.91 million), showing a 7.65 per cent increase. However, this figure did not meet the average estimate of 38.17 billion rupees, according to Refinitiv IBES data.