Shutterstock.comHCL Technologies Ltd. has agreed to acquire Budapest-based Starschema for $42.5 million to bolster its data engineering services and presence in Central and Eastern Europe.
The transaction is subject to regulatory clearance from the Hungarian Ministry of Innovation and Technology and is expected to close in March 2022.
HCL Technologies will now be able to offer data engineering consulting and near-shore access to digital engineering services to a wider base of clients. “Starschema’s capabilities will further scale HCL’s data engineering competencies at our integrated delivery centres across the world,” said Vijay Guntur, president (engineering and R&D services) at HCL Technologies, in a statement. “Engineering talent will continue to remain in high demand, and Starschema offers a specialised talent pool in a strategic growth area for HCL.”
Founded in 2006, Starschema provides consulting, technology and managed services in data engineering to Global 2000 companies in the US and Europe.
The acquisition combines Starschema’s high-value capabilities and data-focused expertise with HCL’s existing presence in industry segments undergoing data-driven transformation. In addition, HCL will strengthen its position in data engineering, which is an integral part of the company’s digital engineering capabilities and next-generation offerings.
“Joining HCL will enable us to keep our strategic focus and expand our data engineering capacity to provide a greater breadth and depth of services to clients,” said Tamas Foldi, founder and chief executive at Starschema.
IT companies are ramping up acquisitions in the digital and engineering solutions space with growing client demand in the ecosystem. In 2021, M&A activity in the IT services industry increased 47% year-on-year and the value of such deals rose 63%, according to ISG, a global technology research and advisory firm. Actual contract value of deals reported in engineering services trebled in 2021.
On Friday, HCL Technologies shares rose 0.32% to Rs 1,337.55 apiece on the BSE while the benchmark S&P BSE Sensex ended the day 0.02% higher at 61,223.03 points.
The transaction is subject to regulatory clearance from the Hungarian Ministry of Innovation and Technology and is expected to close in March 2022.
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Founded in 2006, Starschema provides consulting, technology and managed services in data engineering to Global 2000 companies in the US and Europe.
The acquisition combines Starschema’s high-value capabilities and data-focused expertise with HCL’s existing presence in industry segments undergoing data-driven transformation. In addition, HCL will strengthen its position in data engineering, which is an integral part of the company’s digital engineering capabilities and next-generation offerings.
“Joining HCL will enable us to keep our strategic focus and expand our data engineering capacity to provide a greater breadth and depth of services to clients,” said Tamas Foldi, founder and chief executive at Starschema.
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IT companies are ramping up acquisitions in the digital and engineering solutions space with growing client demand in the ecosystem. In 2021, M&A activity in the IT services industry increased 47% year-on-year and the value of such deals rose 63%, according to ISG, a global technology research and advisory firm. Actual contract value of deals reported in engineering services trebled in 2021.
On Friday, HCL Technologies shares rose 0.32% to Rs 1,337.55 apiece on the BSE while the benchmark S&P BSE Sensex ended the day 0.02% higher at 61,223.03 points.
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