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HCL Tech arm's Swiss firm acquisition news boosts shares by 2%

HCL Tech arm's Swiss firm acquisition news boosts shares by 2%

HCL Tech arm's Swiss firm acquisition news boosts shares by 2%
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By CNBCTV18.com May 9, 2022 1:40:06 PM IST (Published)

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HCL Technologies share price: Shares of HCL Technologies surged about two percent on Monday after the IT company said that its wholly-owned subsidiary--HCL Technologies UK--will acquire Confinale AG, a Switzerland-based digital banking and wealth management consulting specialist and Avaloq Premium Implementation Partner. HCL Technologies was the top gainer on the Nifty IT index.

Shares of HCL Technologies surged about two percent in a weak market on Monday after the IT company said on Friday that its wholly-owned subsidiary, HCL Technologies UK, would acquire Switzerland-based digital banking and wealth management consulting specialist Confinale.

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At 1228 IST, shares of the technology major were trading 2.3 percent higher at Rs 1,074.35 on BSE.
hcl technologies, share price, stock market india, Nifty IT The stock has touched an intraday high of Rs 1,073.45, up 2.22 percent on BSE today. (Source: BSE website)
HCL Technologies was the top gainer on the Nifty IT index. The stock has shed 8 percent in the past month and has fallen about 19 percent year-to-date. This is in comparison to Nifty IT's 13 percent dip in the past one month and a 20 percent drop year-to-date.
Further, the rupee weakened against the dollar, hitting an all-time low at Rs 77.40. This also boosted sentiment for the stock since IT companies bill their clients in dollars, and a strong dollar translates into better revenue.
The latest acquisition will help HCL Technologies gain market share in the fast-growing market of digital wealth management technology solutions, according to ICICI Direct Research.
Founded in 2012, Confinale, which has 91 employees, focuses on IT consulting in key specialist areas in the banking and wealth management sector. The deal is likely to be completed before July.
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The turnover for the year ended December 31, 2021, was 17.5 million Swiss Francs (approximately Rs 136 crore). The deal's total enterprise valuation is 53 million Swiss Francs (Rs 413 crore), including earn-outs, according to an exchange filing.
“Through this acquisition, HCL will increase its footprint in the global wealth management market,” the IT major said in the filing.
“This acquisition significantly strengthens HCL’s digital wealth and asset management capabilities and expands our presence in the heart of the global investment banking sector. We welcome the team from Confinale and look forward to continuing to drive digital banking innovation,” said Rahul Singh, President of Financial Services and Digital Process Operations, HCL Technologies.
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