HCL Technologies announced that it will buy UK-based ETL Factory Ltd, which does business as Datawave, for 7 million pounds (Rs 58.5 crore) to strengthen its data migration and integration services.
ETL Factory has created an innovative data automation platform which enables enterprise customers to do large scale, complex data migration and data integration projects easily, said the Noida-based IT services firm in a statement.
Datawave is ETL Factory's flagship product.
"The acquisition of Datawave and its suite of products bolsters HCL's capabilities to collaborate with clients on their mission-critical data transformation projects, incorporating a culture of DevOps and continuous integration. Datawave also brings in significant banking industry expertise," Rahul Singh, head, Financial Services, HCL Technologies, was quoted as saying in a statement.
Citing one of its recent studies, HCL noted that 81 per cent of organisations said that "they were overwhelmed with the volume and variety of data needed to drive digital transformation".
The cash transaction of up to 7 million pounds includes contingent payments subject to certain financial milestones, the company said in a filing to the exchanges. A step-down wholly-owned subsidiary of HCL Technologies would acquire 100 per cent stake in the firm.
ETL Factory's revenue has grown from 1.04 million pounds in March 2015 to 6.2 million pounds in March 2017.
The company has also announced its strategic partnership with London-based business intelligence firm Alpha Insight. HCL Technologies said it will pick up select assets of Alpha Insight, which focuses on business flow monitoring and operations intelligence in financial services sector.
The company stock price closed at Rs 8.4 or 0.98 per cent down at Rs 850.75 on the BSE on Wednesday, after a 1.38 per cent gain at Rs 871 on Wednesday morning.