HCL Technologies stock closes 2% lower amid reports of Actian Corp acquisition via JV route

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HCL Technologies stock falls on reports of Actian Corporation acquisition via JV route

The HCL Technologies stock fell in early morning trade after reports that the fourth-largest Indian IT services firm and Sumeru Equity Partners (SEP) will acquire US-based Actian Corporation in a $330-million all-cash deal.

At 10:47 am, the stock was trading 1.02% or 10 points lower at 1,001 level on BSE. The stock opened at 1012 level. It hit an intra day high and low of 1,020 and 990 on BSE. The market capitalisation stood at Rs 1.39 lakh crore.

Finally, the stock closed 2% lower at 991 level on BSE. The stock closed at 1,011 level on Thursday.

HCL will own 80 per cent stake in the joint venture that has been formed, with SEP holding 19.5 per cent and Rohit De Souza (Actian Corporation CEO) owning 0.5 per cent, HCL said in a filing.

It added the JV entity will acquire 100 per cent stake in Actian Corporation from its shareholders. The acquisition is expected to be completed by August this year.

The acquisition will be funded by HCL, making an equity contribution of $164 million and debt of $125 million. SEP and De Souza will contribute $40 million and $1 million, respectively, the filing said.

Through this deal, HCL will "own high margin, recurring revenue IP business in data analytics, integration and management products," it said.

Palo Alto-based Actian offers hybrid data management, cloud integration, and analytics solutions. Incorporated in 2005, it has over 275 employees and had registered revenue of $107.1 million in 2017.

It has a global customer base with business operations primarily in the US, the UK, Germany, Japan and Australia.

(With PTI inputs)

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