HCLTech acquires HPE telco solutions to boost network offerings

HCLTech is set to acquire Hewlett Packard Enterprise's (HPE) Telco Solutions business. This deal will enhance HCLTech’s capabilities in 5G network transformation, network cloudification, Network as a Service (NaaS), autonomous networking, Service Management and Orchestration (SMO), AI-led network automation, and AI-native networks for global communication service providers. Telco Solutions supports over 1 billion devices across more than 200 global deployments, including Operations Support Systems (OSS), Home Subscriber Server (HSS), and 5G Subscriber Data Management (SDM).

The acquisition, structured as an asset carve-out, involves a total purchase price of up to $160 million, which includes $15 million in incentives based on FY25 performance. This is a 100% cash consideration. Approximately 1,500 specialists from 39 countries will transfer to HCLTech.

The transaction is subject to regulatory approvals, including the Committee on Foreign Investment in the United States (CFIUS), and is expected to close within six months from the December 18, 2025 signing date. This move aligns with HCLTech's strategy to strengthen its product-aligned model and accelerate growth through higher-value, IP-led services.