HCL Technologies intends to acquire part of IBM’s software portfolio. According to the company, the investment amounts to USD 1.8 billion and includes the acquisition of solutions such as Notes and Domino. The transaction should be completed by mid-2019.
The deal also includes solutions such as Connections, on-premises versions of Portal, Commerce and Unica, BigFix and Appsca. By combining these products with the existing portfolio, HCL Technologies claims to see great potential for creating as-a-service offerings.
The products we buy are located in major growing market areas such as security, marketing and commerce, which are strategic segments for HCL, said C. Vijayakumar, president and CEO of HCL Technologies.
A view also shared by IBM senior vice president of cognitive solutions and research, John Kelly: We believe HCL is well-positioned to drive innovation and growth for their customers. It’s the right time to sell these select collaborative, marketing and commerce software stocks, which are increasingly being delivered as stand-alone products.
In October last year, both parties entered into an agreement, making HCL responsible for the development of Domino products. In the same month last year, HCL also entered into a partnership with Red Hat, focused on enterprise app development. Earlier this year, Red Hat was acquired by IBM for 34 billion dollars.
IBM and HCL have now entered into a permanent intellectual property partnership for five IBM software products, the market value of which would be around $50 billion.
IBM reported for Q3 2018 sales of 18.8 billion U.S. dollars, down 2 percent compared to 2017. Net income was 2.7 billion dollars in Q3 sunshine, a decrease of 1 percent compared to the same quarter last year. IBM’s cognitive solutions, technology services and cloud platforms also show a year-on-year decline.our launch article.