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HCL Technologies Acquires CRM Services Provider PowerObjects
PUBLISHED DATE: Oct 29, 2015
Acquisition will accelerate HCL’s growth in Microsoft Dynamics CRM and
strengthen its position as a Digital Services Provider
Sunnyvale, CA, and Minneapolis, MN, October 29, 2015 – HCL Technologies, a leading global IT services provider, announced today that it has acquired Minneapolis-based PowerObjects - a leading North American provider of Microsoft Dynamics CRM. This will bolster HCL’s global applications business, which offers transformational programs and complex application management for a myriad of clients’ technology landscapes.
PowerObjects is a professional services firm completely focused on providing service, support, education and add-ons for Microsoft Dynamics CRM. The company has won Microsoft’s prestigious ‘Partner of the Year’ award three of the last four years, and is one of Microsoft’s leading partners for Dynamics CRM.
This acquisition enables HCL to take advantage of the rapidly-growing global CRM industry, as Microsoft Dynamics is one of the fastest growing CRM products in the market. At a growth rate of 13.3% in 2014, Gartner Inc. has projected that CRM will be a $36 billion worldwide market by 2017, and will grow faster than any other enterprise software category, as businesses look to build upon long-term customer relationships. Within the CRM market, Microsoft Dynamics CRM outpaced market growth at 21.7% growth in 2014. Adding PowerObjects to HCL’s portfolio further aligns HCL’s growth strategy with Microsoft’s ambition to reinvent productivity and business processes, deepening the relationship between HCL and Microsoft.
“Together, HCL and PowerObjects will now offer one of the largest Microsoft Dynamics practices in North America,” said Greg Palesano, executive vice president and global head of application services. “The acquisition reinforces our commitment to helping clients who rely on Microsoft as a strategic platform. We look forward to combining our global scale with PowerObjects’ capability and expertise to build a world-class Microsoft Dynamics CRM business positioned to capture the growing opportunities in the CRM services market.”
“We are excited that HCL will carry on the PowerObjects heritage of innovation,” said Dean Jones, CEO of PowerObjects. “As clients attempt to grow their revenues by improving their CRM processes and technologies, we believe that blending our teams and areas of expertise will result in increasingly transformational products and services.”
“As companies look for new and more effective ways to engage their customers, technology plays an important role in enabling them to gain greater insights, become more responsive and create business value,” said Susan Hauser, corporate vice president, Enterprise and Partner Group, Microsoft. “HCL and PowerObjects are well positioned to help drive business transformation by helping companies intelligently engage with their customers.”
As part of the acquisition, the existing leadership team of PowerObjects will remain in place, and no workforce changes are planned. The total cash consideration for this transaction is approximately $46 million, including contingent payments subject to certain financial milestones. PowerObjects had trailing twelve-month revenues of approximately $37 million as of September 30, 2015. Over 250 PowerObjects employees will be welcomed into the HCL family.
Founded in 1993, PowerObjects made a strategic decision in 2008 to shift its business practice to focus solely on Microsoft Dynamics CRM. Through unparalleled offerings of service, support, education and add-on applications, PowerObjects can meet the end-to-end needs of a CRM customer. PowerObjects has been a multi-year winner of Microsoft’s prestigious CRM Worldwide Partner of the Year award, including being recently named this year’s Cloud CRM Partner of the Year.
About HCL Technologies
HCL Technologies is a leading global IT services company working with clients in areas that impact and redefine the core of their businesses. Since its emergence on global landscape after its IPO in 1999 and listing in 2000, HCL Technologies, along with its subsidiaries, today operates out of 31 countries and has consolidated revenues of US$ 6.1 billion, as on 30th September 2015 (on LTM 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 105,000+ 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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