Australian IT services company, DWS has been bought by global leader in multinational systems integration HCL Technologies for $225 million. Through this acquisition, HCL Australia will add about 700 employees across offices of DWS in Sydney, Melbourne, Adelaide, Canberra and Brisbane. At present, HCL Australia and New Zealand is 1600-staff strong. The consideration will be paid $162.15 million in cash ($1.23 per DWS share) and $62.5 million in debt of DWS.
Details of the HCL Technologies-DWS deal
Loftus Lane Capital Partners is the exclusive advisor to the IT outsourcing firm DWS on the deal. The transaction of HCL buying DWS is expected to close by December 2020. However, it is subject to closing conditions and regulatory approvals.
In the ASX announcement, the IT services management company’s board unanimously recommended its shareholders to vote in favour of the HCL acquisition, unless a better proposal surfaces. The acquisition will bring outstanding outcomes for all DWS stakeholders: employees, clients, shareholders and other business partners.
Danny Wallis, MD of DWS said the acquisition represents an outstanding outcome for all DWS stakeholders, while citing the premium of the proposal over the present share price of 90 cents. Wallis also said the company is delighted they are joining HCL. Being a leading name in the international technology industry and with 150,000+ employees in 49 countries, HCL brings world-class technology capabilities, global scale and a broad network of partners and clients.
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HCL Australia on acquiring DWS
Executive VP and Country Manager at HCL Technologies, Michael Horton says they are excited for the expansion of HCL Technologies in the ANZ region and are confident that their combined strengths and efforts with DWS will accelerate the digital transformation journeys of their clients and innovations for their customers.
HCL has invested in ANZ for more than 20 years and wants to continue enabling digitalisation and growing the ecosystem. DWS has established a sterling reputation in the country and is powered by highly skilled and talented consultants. HCL looks forward to welcoming the DWS team onboard and creating enhanced career opportunities and global learning in the future.
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