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HCL Tech stock plummets 8pc after IBM deal


Devdiscourse News Desk new delhi Last Updated at 07-12-2018 13:37:20 IST India
HCL Tech stock plummets 8pc after IBM deal
  • Stocks of HCL Technologies slumped nearly 8 per cent on Friday after the company announced acquisition of select IBM software products for USD 1.8 billion

Stocks of HCL Technologies slumped nearly 8 per cent on Friday after the company announced acquisition of select IBM software products for USD 1.8 billion in an all-cash deal.

After a negative opening on BSE, the scrip further declined 7.6 per cent to hit an intra-day low of Rs 935.

At 1300 hrs the stock was trading at Rs 951.65 apiece, down 5.96 per cent from the previous close

On NSE, the same trend followed as the company's stock fell by 7.7 per cent to an intra-day low of Rs 934.45. Later, at 1300 hours, the stock was trading 6.06 per cent lower at Rs 951.15.

HCL Technologies, in a regulatory filing said, it will acquire select IBM software products for USD 1.8 billion (over Rs 12,700 crore) in an all-cash deal.

The the deal is subject to "completion of applicable regulatory reviews" and is slated to close by mid-2019.

The deal entails seven products in areas including security, marketing and collaboration solutions, and represents a total addressable market of more than USD 50 billion, the firm said in the filing.

(With inputs from agencies.)


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