siliconindia News Bureau

Monday, June 03, 2002

Building further on its strategic non-linear growth model, HCL Technologies Ltd today announced complete acquisition of Gulf Computers Inc, USA.

NEW DELHI: Gulf Computers, headquartered in Massachusetts, provides full life cycle support for customized application development in business process automation and development management for diverse clients, including the government, using FileNet, Oracle, Sun and Microsoft Technologies.

The acquisition has commenced with the payment of the first tranche of $8 million, a second tranche of $1.75 million to be paid after six months and a series of tranches, concluding three years from now. All future tranches till the end of the third year will be linked to the profitability and growth of Gulf Computers Inc.

"I see this acquisition as a strategic step forward in the implementation of HCL's well-conceived non linear growth strategy", Shiv Nadar, chairman, president and CEO of HCL Technologies, said.

Gulf Computers has two offshore development centers in Mumbai and Bangalore, manned by 189 employees. It has worked extensively with various state governments and other clients in the US and is currently involved in multiple projects for the states of Tennessee, Florida, Georgia, Missouri and Maryland.

The company would thus be able to combine Gulf Computers' client relationships and process advantages, with HCL's proven and scalable offshore delivery capabilities, to address large sized government projects. HCL would gain the opportunity to deploy its offshore capabilities and infrastructure and extend its composite range of IT services to Gulf Computers' existing client base.

The acquisition brings an accomplished pool of management talent into the HCL fold, as the newest addition to the HCL group will continue to be managed by Gulf Computers' existing management team.