India’s HCL Tech has entered into a definitive agreement to acquire ASAP Group, a German automotive engineering services provider, marking a strategic move to strengthen its position in the global engineering and R&D services landscape.
Future-Focused Acquisition
HCL Tech’s forthcoming acquisition of ASAP Group underscores its commitment to advanced automotive technologies, including autonomous driving, e-mobility, and connectivity. The deal with ASAP, known for serving top German automotive OEMs and tier 1 suppliers, aligns with HCL Tech’s aspiration to be a trailblazer in cutting-edge engineering solutions.
Key Services and Presence
Based in Ingolstadt, Germany, ASAP Group boasts a comprehensive service portfolio encompassing electrics/electronics, software, consulting, testing, validation, and vehicle development. With a robust presence comprising over 1,600 employees across nine German locations, ASAP generated a reported turnover of 154.3 million euros in the fiscal year ending December 2022.
Strategic Synergy
HCL Tech, a prominent player in global engineering and R&D services, aims to fortify its prominence with the ASAP acquisition. Collaborating ASAP’s pioneering capabilities with HCL Tech’s prowess will amplify HCL Tech’s position in the burgeoning European automotive engineering services sector and other pivotal global markets.
Catalyst for Global Growth
By merging ASAP’s E&E/software development capabilities with HCL Tech’s established presence in the automotive domain, the combined entity will serve as a springboard for growth in Germany and pave the way for an extended expansion into critical automotive markets in Europe, the Americas, and Japan.
Shared Vision for Mobility
Hari Sadarahalli, Corporate Vice-President of Engineering and R&D Services at HCL Tech, acknowledges that core engineering is a cornerstone of HCL Tech’s identity. The partnership with ASAP Group embodies the collective drive toward shaping the future of mobility. This synergy is anticipated to facilitate the seamless dissemination of innovative capabilities and solutions throughout the global network.
Mutual Empowerment
Michael Neisen, CEO of the ASAP Group, expresses excitement over aligning their growth trajectory with HCL Tech’s vision of propelling progress through technology and collaboration. The integration of HCL Tech and ASAP’s engineering prowess is poised to deliver substantial advantages to the global automotive industry, contributing to enhanced technological performance and excellence.
Closing Timeline
The transaction is set to conclude in September 2023, solidifying HCL Tech’s foray into the advanced automotive engineering landscape and its commitment to fostering innovation and talent in Germany.
HCL Tech’s acquisition of ASAP Group emerges as a strategic leap forward, amplifying HCL Tech’s engineering capabilities, bolstering its footprint across key global markets, and nurturing its vision for groundbreaking advancements in the automotive industry.