German autonomous driving tech company ASAP is purchased by HCLTech for $279 million

German autonomous driving tech company ASAP is purchased by HCLTech for $279 million

For €251 million ($279.72 million), HCLTech, the third-largest IT services provider in India, purchased a 100% equity position in ASAP Group, a German provider of automotive engineering services. The transaction, which will be carried out through HCLTech’s UK subsidiary and is currently awaiting regulatory permission, is anticipated to be completed by September 2023, the IT giant stated in a filing with the stock exchange on Thursday.

In-depth details on German autonomous driving tech company ASAP is purchased by HCLTech for $279 million

The acquisition is anticipated to assist the IT company in expanding its portfolio in sectors including connectivity, e-mobility, and autonomous driving. The agreement will also assist the large IT company in growing its service offerings into important automotive markets in Europe, the Americas, and Japan.

According to HCLTech, ASAP is concentrated on cutting-edge automotive technology in areas including connectivity, e-mobility, and autonomous driving. ASAP, which was established in 2010 and has its corporate office in Ingolstadt, collaborates with Germany’s leading automotive OEMs and tier-1 suppliers.

“ASAP has made some impressive strides in the field of automotive engineering, and we concur with their outlook on the future of mobility. According to Hari Sadarhalli, corporate vice-president of engineering and R&D services at HCLTech, this arrangement will allow us to leverage these abilities and breakthroughs across our global network.

“Core engineering is at the core of HCLTech’s DNA and truly differentiates our services portfolio,” the speaker continued. This investment strengthens our dedication to Germany, one of our key markets. To maximize their potential, we will continue to support the local innovation environment and talent pool.

“We are thrilled to align our growth journey with HCLTech’s purpose of bringing together the best of technology and people to supercharge progress for all stakeholders,” said Michael Neisen, CEO of the ASAP Group. We have faith that the engineering and technological prowess of HCLTech and ASAP will give the global automotive sector best-in-class advantages.

According to a report released by HCLTech on Wednesday, the company’s net profit decreased 11.2% sequentially while increasing 7.6% year over year (YoY) in Q1 FY24 to Rs 3,534 crore from Rs 3,283 crore in the year prior. In addition, the company reported a reduced order book for the quarter ($1.56 billion), compared to its usual range of $2 billion and higher.

A 10-rupee interim dividend per equity share was issued by the corporation.

In Q1FY24, the company’s consolidated sales increased by 12% to Rs 26,296 crore from Rs 23,464 in the same quarter the previous year.

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