HCL adds 700-strong ANZ team with $160 million DWS deal
Global technology services company HCL has strengthened its presence in Australia and New Zealand (ANZ) through the acquisition of DWS – a 700-strong digital consultancy listed on the Australian Stock Exchange.
Over three decades of operation, DWS has managed to expand beyond its Melbourne headquarters to build a presence in Sydney, Adelaide, Brisbane and Canberra, with the addition of a New Zealand subsidiary in 2019. For HCL, this expansive presence is reportedly worth approximately $160 million.
DWS is publicly listed on the Australian Stock Exchange (ASX), and HCL’s acquisition amounts to more than 130 million shares, including the majority 42% owned by DWS CEO Danny Wallis. Reports suggest that Wallis was instrumental in popularising the move among shareholders, whom he believes will benefit from the deal.
“The opportunity to realise certain value at a significant premium represents a great outcome for our shareholders, who have been supportive over the company’s long history of its strategy and direction,” he said.
Currently, Indian-headquartered HCL operates with more than 1,500 professionals in Australia, with a presence in the key financial centres of Canberra, Sydney, Melbourne, Brisbane and Perth. DWS is an attractive proposition for the firm, given its strong base of clients in ANZ and its suite of services – spanning cloud solutions, digital transformation, business intelligence, application development and experience design, just to name a few.
Adding to the appeal is DWS’ growth recently, evidenced by two major acquisitions in the last two years. The first was a $43 million pick up of Canberra-based consultancy Projects Assured in 2018, and the second was the acquisition of digital transformation consultancy Object Consulting for more than $4 million last year. The acquisitions added significant consulting and transformation capabilities to its IT heritage.
Michael Horton, HCL’s Country Manager for ANZ, lauded the firm’s success in the market. “DWS has forged a sterling reputation, powered by highly talented consultants who enable organisations to be at the cutting edge of technology. We look forward to welcoming the DWS team to HCL and creating enhanced global learning and career opportunities for them,” he said.
“We are excited for this expansion of HCL Technologies in Australia and New Zealand and are confident that our combined strengths will further accelerate the digital transformation journeys of our clients and innovations for their customers,” said Horton.
At a time when the demand for digital transformation services is on the rise – particularly in light of the current Covid-19 environment and business recovery – such a combined offering is likely to thrive.
