labels: aquila technologies pvt ltd, hcl technologies, it news
HCL Tech acquires 35.5% stake in Aquila news
Our Convergence Bureau
20 July 2002
Mumbai: HCL Technologies (www.hcltech.com) has announced that it has acquired, through one of its subsidiaries, a 35.5-per cent stake in Aquila Technologies Pvt Ltd (www.aquila-tech.com), India.

Aquila is a Bangalore-based software solutions provider in the areas of engineering software and services like CAD/CAE PDM/CPC, virtual engineering frameworks, visualisation, image processing and computer game development.

The company has 51 employees with focused skills in these defined areas, operating offshore from Bangalore, catering to both the domestic and the export market. Aquila currently has a client list that includes leading global majors such as Daimler Chrysler, Rieter Automotive, Hewlett Packard and Visionix, among others.

Collaborating to leverage skill sets in engineering
Aquila has proven software development capabilities and the ability to use tools and packages to deliver engineering services. The existing management of Aquila will continue to work with HCL Tech.

The alliance will thus augment HCL Tech's engineering software and services expertise while providing new skills in the area of image processing and computer game development. HCL Tech will be able to leverage Aquila's skills to add engineering service opportunities within its own customer base to create a formidable practice in engineering software and services, image processing and computer game development.

Transaction details
In the current transaction, HCL Tech is acquiring a 35.5-per cent stake in Aquila for a consideration of Rs 55.5 million. HCL Tech will acquire the balance stake in three equal tranches over a period of three years. The purchase consideration for the same is based on the achievement of certain milestones linked to the growth and profitability of Aquila.

Aquila Technologies president and CEO Deepak Vinchhi says: ''This alliance with HCL Tech will strengthen our credibility and enable us to address large-sized orders. Leveraging our combined strengths, we should be able to grow the business substantially.''

HCL Tech general manager (strategic initiatives) Bejoy George says: ''We have been seeking an alliance in the CAD/CAE space to grow HCL Tech's business. In Aquila we perceive a synergistic fit with our strategy and organisation culture and recognise the potential for significant value creation for HCL Tech customers. Aquila's calibre and skill sets are at par with established players in this space and we believe their manageable size will facilitate a quick and easy integration within the HCL Tech organisation.''

About HCL Technologies
HCL Technologies is one of India's leading global IT services and product engineering companies, providing value-added, software-led IT solutions and services to large- and medium-scale organisations.

Founded in 1991, HCL Technologies focuses on technology as well as R&D outsourcing, with the objective of working with clients in areas at the core of their business. HCL Technologies delivers these services through an extensive offshore software development infrastructure and a vast global marketing network that enables scaleable, flexible and cost-effective delivery.

As of 31 March 2002, HCL Technologies Ltd, along with its subsidiaries, had 5,945 employees. The HCL Technologies team today has operations spanning 25 locations in 14 countries - covering over 80 per cent of the world's IT market.

Together with its knowledge of embedded systems, core technologies and applications development expertise, HCL Technologies is positioned, as a composite solutions provider equipped to cater to the entire gamut of IT needs.

About Aquila Technologies
Aquila was founded in 1995, and has capabilities in the areas of engineering software and services like CAD/CAE, PDM/PLM/CPC, virtual engineering frameworks, image processing, 3D visualisation and computer game development. Aquila has customers in Europe, the US and in India. Aquila in FY02 ended with revenues of Rs 30.4 million.



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HCL Tech acquires 35.5% stake in Aquila