HCL Technologies has signed an agreement to acquire a 100% equity stake in ASAP Group for a deal valued at 251.1 million euros (Rs 2,206 crore) by September 2023.
Headquartered in Ingolstadt, Germany ASAP is working on future-oriented automotive technologies in areas such as autonomous driving, e-mobility and connectivity.
It counts top automotive original equipment manufacturers (OEM) and tier 1 suppliers in Germany among its customers.
ASAP’s services portfolio comprises electrics/electronics, software, consulting, service testing and validation and vehicle development. It employs over 1,600 people across 9 locations in Germany.
The company posted a turnover of 154.3 million euros (Rs 1,355 crore) in 2022, a growth of 26 percent compared to 122.5 million euros (Rs 1,076 crore) a year ago.
HCL Tech is a global leader in engineering and R&D services and works with 63 of the top 100 global engineering R&D spenders. The acquisition will boost HCL Tech’s global leadership in engineering services by strengthening its advanced technology, and capabilities in the fast-growing automotive engineering services segment in Europe and other key global markets.
Hari Sadarahalli, Corporate VP, Engineering and R&D Services, HCL Tech said, “Core engineering is at the heart of HCL Tech’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. 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.”
Michael Neisen, CEO, ASAP Group said, “We are delighted to align our growth journey with HCL Tech’s purpose of bringing together the best of technology and people to supercharge progress for all stakeholders. We are confident that the combination of HCL Tech and ASAP’s engineering and technology performance will bring best-in-class advantages to the automotive industry worldwide.”