India’s HCL Technologies Ltd. agreed to acquire German automotive engineering services provider ASAP Group at an enterprise value of around 251.1 million euros ($280 million).

The company intends to acquire 100% stake in ASAP via its wholly owned step-down subsidiary HCLTech UK Ltd. in cash, the Indian IT services firm said in a statement.

The acquisition will boost the company’s engineering services by strengthening its advanced technology capabilities in the fast-growing automotive engineering services segment in Europe and other key automotive markets in Americas and Japan, it added.

Headquartered in Ingolstadt, Germany, ASAP is focused on future-oriented automotive technologies in areas such as autonomous driving, e-mobility and connectivity, according to the statement. ASAP’s services portfolio comprises electrics/electronics, software, consulting, service testing and validation and vehicle development, it said.

The company, which has over 1,600 employees across nine locations in Germany, serves top automotive original equipment manufacturers (OEM) and tier 1 suppliers in the country, HCL Tech said.

ASAP’s total turnover stood at 154.3 million euros in the fiscal year ended 31 December 2022, up from 122.5 million euros a year earlier, it noted.

The transaction, subject to relevant regulatory approvals, will likely close by September 2023, according to the statement.

Note: $1 = 0.89789 euros

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