HCLTech to acquire German engineering firm ASAP Group for $279 million

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HCLTech has signed a definitive agreement to acquire a 100 percent stake in ASAP Group, a German company providing automotive engineering services, for €251.1 million (about $279 million). The acquisition is expected to close in September 2023.

The acquisition is expected to help HCLTech’s engineering services by leveraging its advanced technological capabilities in the fast growing automotive engineering services sector in Europe and other major global markets.

The company has more than 1,600 employees at nine locations in Germany.

“Core engineering is at the core of HCLTech’s DNA and really differentiates our suite of services. ASAP has developed some exciting capabilities in automotive engineering, and we share their vision for the future of mobility. This agreement will enable us to scale these capabilities and innovations across our global network,” said Hari Sdarahali, Vice President Corporate President of Engineering, R&D Services at HCL Tech.

Read also: HCLTech Q1 FY24 Results: Net Profit increased by 7.6% YoY to Rs.3,534 crore

He added, “This investment also reinforces our commitment to Germany, which is a pivotal market for us. We will continue to nurture local talent and the innovation ecosystem to unlock their potential.”

Headquartered in Ingolstadt, Germany, ASAP focuses on future-oriented automotive technologies in the areas of vehicle driving, e-mobility, and connectivity. ASAP serves Germany’s leading OEMs and Tier 1 suppliers. ASAP’s suite of services includes electrical/electronics, software, consulting, service testing and validation, and vehicle development.

HCLTech said it sees “high potential” in areas such as autonomous driving, e-mobility and connectivity, which are the ASAP Group’s areas of expertise. For 2022, ASAP Group reported revenue of 154.3 million euros (about $172 million).