ASAP was founded in 2010 giving focus to future-oriented technologies. The company is headquartered in Ingolstadt, Germany.
New Delhi: Information Technology behemoth HCLTech has acquired a 100 per cent equity stake in German automotive engineering services provider ASAP Group, said a company filing. This acquisition will help the IT company gather momentum in areas such as autonomous driving, e-mobility and connectivity; and expand into key automotive markets in Europe, America and Japan.
HCL Buys ASAP: Key Points
The deal, which will be completed through HCLTech’s UK subsidiary, is subject to relevant regulatory approvals and is expected to close in September 2023. The transaction is going to be entirely in cash, valuing the company at around € 251.1 million ($279.72 million), said the filing.
ASAP was founded in 2010 giving focus to future-oriented technologies. The company is headquartered in Ingolstadt, Germany.
ASAP works with the top automotive original equipment manufacturers (OEM) and tier-1 suppliers in Germany. Electrics/electronics, software, consulting, service testing and validation and vehicle development are the many areas of the service portfolio of ASAP.
Almost 1,600 people have been employed by ASAP across Germany.
“Core engineering is at the heart of HCLTech’s DNA and truly differentiates our services portfolio. ASAP has developed some exciting capabilities in automotive engineering, and we share their vision for future of mobility. This agreement will enable us to scale these capabilities and innovations across our global network,” said Hari Sadarahalli, Corporate Vice President, Engineering and R&D Services, HCL Tech. “This Investment also reinforces our commitment to Germany, which is a focus market for us. We will continue to nurture local talent and innovation ecosystem to unlock their potential,” he added.
Michael Neisen, CEO of the ASAP Group said, “We are delighted to align our growth journey with HCLTech’s purpose of bringing together the best of technology and people to supercharge progress for all stakeholders. We are confident that the combination of HCLTech and ASAP’s engineering and technology performance will bring best-in-class advantages to the automotive industry worldwide.”
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Yesterday, June 12, HCLTech reported its earnings for the first quarter of fiscal 2024. The company’s net profit grew 7.6 per cent year-on-year (YoY) while sequentially it fell by 11.2 per cent. The company also reported a slower order book of $1.56 billion for the quarter as compared to its usual range of $2 billion and above.
