Indian IT major HCL Technologies (HCL) will acquire select IBM software products for $1.8 billion. The transaction is expected to be finalised by mid-2019 after regulatory approvals, according to a press statement.
The software products to be acquired have a total addressable market of $50 billion. The products include 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, the statement said.
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HCL and IBM have an ongoing Intellectual Property Partnership for five of these products, the statement added.
C Vijayakumar, President and CEO, HCL Technologies, said “We continue to see great opportunities in the market to enhance our Mode-3 (Products and Platforms) offerings. The products that we are acquiring are in large growing market areas like security, marketing and commerce which are strategic segments for HCL. Many of these products are well regarded by clients and positioned in the top quadrant by industry analysts.”
John Kelly, IBM senior vice-president, Cognitive Solutions and Research, said in the statement, “We believe the time is right to divest these select collaboration, marketing and commerce software assets, which are increasingly delivered as standalone products. At the same time, we believe these products are a strong strategic fit for HCL, and that HCL is well positioned to drive innovation and growth for their customers.”