Date
11 December 2018
IBM is offloading seven software products assets to India's HCL Technologies in a US$1.8 billion deal. Photo: Bloomberg
IBM is offloading seven software products assets to India's HCL Technologies in a US$1.8 billion deal. Photo: Bloomberg

IBM sells some of its software products business to India’s HCL

International Business Machines Corp (IBM) is selling some of its software products business to Indian software services exporter HCL Technologies in a deal worth US$1.8 billion, Reuters reports.

IBM will divest seven of its products, including its secure device management product BigFix, marketing automation product Unica and workstream collaboration product Connections, the report said, citing a company statement

The software products in scope represent a total addressable market of more than US$50 billion, according to the statement.

The transaction is expected to close by mid-2019.

“The products that we are acquiring are in large growing market areas like security, marketing and commerce which are strategic segments for HCL,” said C Vijayakumar, Chief Executive of HCL.

IBM’s transaction comes as the firm’s software sales, which have slowed down in the past, weighed on its latest quarterly revenue, the report noted.

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RC

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