HCLTech to Acquire HPE Telco Solutions Business for $160M
HCLTech has acquired HPE’s Telco Solutions business for $160M, adding 1,500 engineers to its telecom portfolio, with the deal expected to close in six months.
HCLTech to acquire Telco Solutions business of HPE at 160M.
HCLTech, one of the world’s biggest IT services companies, declared on December 18, 2025, that it had agreed to acquire the business of Hewlett Packard Enterprise's (HPE) Telco Solutions business.
It is a 100 per cent cash acquisition worth about $160 million + $15 million performance incentives, and is meant to help HCLTech consolidate its telecoms business. The companies declared that the transaction will be closed in approximately six.
The agreement will see an influx of almost 1,500 engineering and telecom experts based in 39 countries to the global delivery team of HCLTech, increasing the telecom engineering capacity of HCLTech.
Telco Solutions Business of HPE.
The Telco Solutions division of HPE has specialised network software and data-management solutions available to communications service providers (CSPs). Its platforms are applied in live networks in support of over 1 billion devices in over 200 deployments around the world. The core products in the portfolio include.
Broad deployment: 1+ billion device support and 200 + global deployments.
OSS (Operations Support Systems), HSS (Home Subscriber Server), and 5G SDM (Subscriber Data Management) mobile and fixed network solutions are core carrier platforms.
High automation: AI performance optimisation and monetisation through closed-loop network automation.
These technologies help carriers automate some of the most essential operations and create new types of revenue through AI-based intelligence. The Telco Solutions suite used to belong to HPE Communications Technology Group (CTG). By 2024, HCLTech had already purchased some of the CTG portfolio, including business support systems, network applications, service cloudification, and data intelligence, and made them part of its offerings. The new deal is a transfer of the remaining Telco Solutions assets into the portfolio of HCLTech, which provides the firm with more industry-leading IP, engineering talent, and customer relationships with the best global carriers.
Strategic Rationale.
HCLTech reported that the aggregated assets will help it to speed up network-transformation efforts. The company pointed out that the acquisition will improve its Network-as-a-Service (NaaS) and autonomous networking solutions with AI-based automation and cloud-native design. The purchase of the established IP and engineering team of HPE will support HCLTech's 5G and AI-driven solutions. Practically, it is the opinion of HCLTech executives that the deal can assist carriers to transform a traditional telecom operator to a more software-focused “techco” model, integrating IP-led services to enable more advanced 5G deployments and new areas of revenue.
Executive Comments.
The leaders of HCLTech were optimistic about the acquisition. According to Anil Ganjoo, Chief Growth Officer and head of global telecom at HCLTech, the company is very optimistic about the prospect ahead, since HCLTech is ideally placed to enable CSPs to become technology companies, not telcos- making the transition of telcos into techcos a reality. He also said that the infused HPE staff and their established IP reinforce our model of products and make our transformation to more valuable, IP-based products and non-linear growth faster.
The other side of the transaction was also complemented by HPE. Rami Rahim, the Executive Vice President and General Manager of Networking at HPE, stated that the deal would bring benefits to the carriers in the years to come, since both HPE and HCLTech will remain committed to innovation in the telecom sector. Rahim said that the deal will bring benefits to the carriers over the years, as the Telco Solutions business has a history of success.
Savings Timeline and Outlook.
The deal is to be done as a complete cash acquisition at 160 million dollars, with an extra 15 million performance bonuses on top. Both companies have promised customers that they will not interrupt their support and services in the process of transition. The transaction is still under regulatory approvals and other customary conditions, with the closing expected towards mid-2026. HCLTech will incorporate the product of Telco Solutions into the telecom software and engineering unit of HCLTech once it is completed. According to industry analysts, the acquisition radically expands the telecom portfolio of HCLTech and makes the company a strategic technology partner of carriers seeking network changes by applying AI.
References: Press release and news articles of HCLTech.
What's Your Reaction?
Like
0
Dislike
0
Love
0
Funny
0
Angry
0
Sad
0
Wow
0
JAHID
’m a passionate Social Media Marketing professional who loves building brand presence online. I specialize in creating engaging content, managing campaigns, and analyzing performance to drive audience growth and brand awareness.
Currently, I’m working at Shakuniya Solutions Pvt. Ltd., where I’m learning and applying strategies to help clients achieve real results through social media. I believe in creativity, consistency, and data-driven marketing.
