HCLTech's Bold Move: Acquiring HPE's Telco Unit to Supercharge AI Networks

Following an earlier transaction with HPE in 2024, HCLTech will, through this new acquisition agreement, further gain industry-leading intellectual property (IP), product engineering and R&D talent, and client relationships with top global Communication Service Providers (CSPs), the company said in a statement.

Telco Solutions supports more than 1 billion devices through its solutions, across 200+ deployments globally. It enables Operations Support Systems (OSS), Home Subscriber Server (HSS) and 5G Subscriber Data Management (SDM), with advanced AI-led closed-loop network automation for seamless network monetization, it added.

Telco Solutions was formerly part of HPE's Communications Technology Group (CTG), from which HCLTech acquired certain assets in 2024. The previously acquired CTG portfolio, spanning Business Support Systems (BSS), network applications, service cloudification, and data intelligence, has been successfully integrated and is now growing.

HCLTech will leverage this expanded capability to accelerate network transformation, Network as a Service (NaaS) and AI-led autonomous networking. As part of this agreement, nearly 1,500 engineering and telecom specialists from 39 countries will join HCLTech's global delivery team to help scale the business.

"We are very excited about the opportunity ahead, as HCLTech is uniquely positioned to empower CSPs to realize their transformation into true technology companies--advancing the shift from telcos to techcos," said Anil Ganjoo, chief growth officer and global head of telecom, media, publishing & entertainment and technology (TMT) at HCLTech.

"Integrating this highly skilled HPE team and their market-proven IP strengthens our product-aligned model and accelerates our shift toward higher-value, IP-led services and non-linear growth."

"HCLTech has a compelling vision for enabling CSPs that will harness the Telco Solutions business's momentum and track record of customer success to further accelerate innovation and customer impact," said Rami Rahim, executive vice president, president and general manager, Networking, HPE.

"This transaction will yield benefits for CSPs for many years to come, as both HPE and HCLTech pursue their unique, differentiated approaches to supporting this vital sector of the market, through strategic focus and commitment to innovation."

This transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in approximately six months.

- ANI