HCL Acquires Workplace Modernization and Virtualization Services Provider P2P
Acquisition will accelerate HCL’s growth in Workplace engineering and strengthen its position
Noida, India, London, UK, January 25, 2016: HCL Technologies (HCL), a leading global IT services provider, today announced its acquisition of Point to Point Limited and Point to Point Products Limited (jointly referred as Point to Point or P2P), UK’s leading end-user cloud solutions design, implementation and delivery specialists.
With over a decade of experience in the desktop and application virtualization space, Point to Point provides a range of enterprise workplace transformation services and end-user cloud engineering solutions. These include managed serviced desktop services and support for virtualized workplace environments. The firm is a longstanding Microsoft and Citrix Gold and also a Google Chrome partner and provides support to over 250 organizations across a range of industry sectors, including media, finance, travel, public sector and automotive.
As part of the acquisition, HCL will be acquiring 100% outstanding shares of the company, the existing leadership team of P2P will remain in place and no workforce changes are planned. The total cash consideration for this transaction is approximately GBP 8 million, including contingent payments subject to certain financial milestones. P2P had trailing twelve–month revenues of approximately GBP 8.5 million as of December 31, 2015. Over 40 P2P employees will be welcomed into the HCL family. The acquisition will have a simultaneous signing and closing and business folds into HCL immediately on signing of the deal.
P2P is independent company and this transaction does not fall within the definition of related party transaction.
“More and more organizations are transitioning to cloud and virtualized workplace environments in order to better support end–users and offer the flexible working that modern workforce demands. HCL’s vision for the Workplace of the Future is helping enterprises deliver 21st century workplace experience to their users. The acquisition of Point to Point will further help us maximize our ability to fully realize this vision. I welcome the passionate and capable Point to Point Technologies team to the HCL family,” said Anand Birje, Senior Vice President, Corporate Development and Strategy (Infrastructure and Digital Services), HCL Technologies.
“The complementary strengths of HCL Technologies and Point to Point creates a huge opportunity for us to drive value and set a new industry benchmark for workplace services . Combining our own expertise of designing workplace environments and cloud solutions around the needs of end users, with HCL’s vision for the Workplace of the Future will truly enable us to eclipse the competition with a unique value proposition,” said Sandra Palmer, Managing Director, Point to Point.
The acquisition enables HCL to take advantage of the rapidly growing virtualization space as there is a Global Shift to Desktop Virtualization and as per an IDC report titled “Worldwide Workspace-as-a-Service 2014–2018 Forecast”, the virtual client computing market will grow from $2.8 billion in 2013 to $4.7 billion in 2018. Adding P2P augments HCL’s capability in virtualized desktop technologies such as Citrix, Microsoft and Lakeside.
About Point to Point Limited and Point to Point Products Limited
Founded in 1993, Point to Point Limited and Point to Point Products Limited provide complex workplace engineering services in the UK. In the Fiscal Year ending December 2015, P2P clocked revenues of c. GBP 8.5M. P2P has strong experience in desktop virtualization, DaaS, Google Chrome and offers services including desktop & application virtualization, desktop & application delivery, DaaS and consulting services. P2P is Citrix Gold Partner and is the 1st Google Chrome Virtualization Partner.
About HCL Technologies
HCL Technologies is a leading global IT services company working with clients in areas that impact and redefine the core of their businesses. Since its emergence on global landscape after its IPO in 1999 and listing in 2000, HCL Technologies, along with its subsidiaries, today operates out of 32 countries and has consolidated revenues of US$ 6.1 billion, as on 31st December 2015 (on Calendar Year basis). HCL focuses on 'transformational outsourcing', underlined by innovation and value creation, offering an integrated portfolio of services including Enterprise Digitalization, Internet of Things, Engineering Services Outsourcing and Next Generation IT Outsourcing that focuses on transformation-led infrastructure services, applications services and business services. HCL leverages its extensive global delivery capabilities and integrated innovation labs across the world to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Telecommunications, Media, Publishing & Entertainment, Retail & CPG, Life sciences & Healthcare, Oil & Gas, Energy & Utilities, Travel, Transportation & Logistics and Government. With 103,696 professionals from diverse nationalities, HCL Technologies focuses on creating real value for customers by taking 'Relationships Beyond the Contract'. For more information, please visit www.hcltech.com
HCL Forward-Looking Statements
Certain statements in this release are forward-looking statements, which involve a number of risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those in such forward-looking statements. All statements, other than statements of historical fact are statements that could be deemed forward looking statements, including but not limited to the statements containing the words 'planned', 'expects', 'believes’,’ strategy', 'opportunity', 'anticipates', 'hopes' or other similar words. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding impact of pending regulatory proceedings, fluctuations in earnings, our ability to manage growth, intense competition in IT services, Business Process Outsourcing and consulting services including those factors which may affect our cost advantage, wage increases in India, customer acceptances of our services, products and fee structures, our ability to attract and retain highly skilled professionals, our ability to integrate acquired assets in a cost effective and timely manner, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, the success of our brand development efforts, liability for damages on our service contracts, the success of the companies /entities in which we have made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property, other risks, uncertainties and general economic conditions affecting our industry. There can be no assurance that the forward looking statements made herein will prove to be accurate, and issuance of such forward looking statements should not be regarded as a representation by the Company, or any other person, that the objective and plans of the Company will be achieved. All forward looking statements made herein are based on information presently available to the management of the Company and the Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.
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