HCL Technologies Ltd. (HCL), India’s leading global IT services provider, today announced signing of an agreement to fully acquire Control Point Solutions, Inc., the leading provider of voice, data and wireless Telecommunications Expense Management (TEM) services. Privately held, Control Point Solutions (CPS) leads the TEM market with robust platforms catering to both enterprises and carriers across industry verticals. As part of the transaction, HCL will acquire four delivery centres in US with over 200 professionals who come to HCL with domain knowledge and technical expertise. Control Point Solutions is being acquired at an enterprise valuation of $20.8 million. This valuation is on cash free and debt free basis.
This acquisition strengthens HCL’s unique advantage of providing multi-service delivery platforms for our customer with CPS’ TEM expertise complementing HCL’s remote infrastructure service offering. Control Point Solutions is a market leader in the highly fragmented TEM industry with its internally developed robust platforms. Control Point Solutions’ technology has been a key differentiator that has demonstrated capability to support both the Enterprise and Carrier segments. Control Point Solutions customers include Fortune 500 organizations across a broad variety of industries. For nearly two decades, Control Point Solutions has managed the entire telecom expense life cycle for clients, providing industry-leading solutions for their voice, data and wireless requirements.
Commenting on the acquisition, Mr. Ranjit Narasimhan, President and CEO- BPO Services of HCL Technologies, said, “The strategic acquisition of Control Point Solutions is in line with HCL BPO’s goal to make strategic, platform-based acquisitions which give us sustainable competitive advantage in chosen verticals. This acquisition enhances HCL’s ability to become an end-to-end provider of business process outsourcing services in the attractive TEM space. With this acquisition, HCL becomes the first business process service provider to enter this market. HCL will leverage its existing experience in TEM to further diversify into other geographies and newer areas like utilities, freight, to name a few. We are delighted to welcome the high quality staff of CPS into the HCL family, and we look to the continued leadership and caliber of its executive team to take TEM to the next generation.”
Bob McMullan, CEO of Control Point Solutions Inc., said, "Over the last year, Control Point Solutions has invested in delivering the most advanced technologies, building new data and service centers, and elevating our customer service to become a leader across the industry. Our decision to join HCL is yet another strategic move aimed at advancing our position in the marketplace. HCL is well capitalized with a far-reaching global infrastructure, offering new channels that will enable Control Point Solutions to focus on and grow its core BPO business in both the enterprise and carrier segments. HCL Technologies will also facilitate Control Point Solutions’ push to offer additional services to our current client base and enhance its current platform.”
Commenting on the acquisition, Anil Chanana, Executive Vice President – Finance of HCL Technologies, mentioned, “The acquisition of Control Point is in continuation of HCL’s strategy to seek non-linear growth opportunity. This acquisition will further enhance HCL’s presence in F&A BPO space. We are confident of delivering incremental shareholder value through our acquisitions.”
Langham Capital Limited acted as financial advisors to HCL in the transaction. The acquisition is subject to fulfillment of certain closing conditions.
HCL Technologies is one of India’s leading global IT Services companies, providing software-led IT solutions, remote infrastructure management services and BPO. Having made a foray into the global IT landscape in 1999 after its IPO, HCL Technologies focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business. The company leverages an extensive global offshore infrastructure and its global network of offices in 16 countries to deliver solutions across select verticals including Financial Services, Retail & Consumer, Life Sciences Aerospace, Automotive, Semiconductors, Telecom and MPE (Media Publishing & Entertainment). For the year ended 30th June 2008, HCL Technologies, along with its subsidiaries had revenues of US$ 1.9 billion (Rs. 7,639crore) and employed 50,741 professionals. For more information, please visit www.hcltech.com
About HCL Enterprise
HCL Enterprise is a $4.9 billion leading Global Technology and IT Enterprise that comprises two companies listed in India – HCL Technologies & HCL Infosystems. The 3-decade-old Enterprise, founded in 1976, is one of India’s original IT garage start-ups. Its range of offerings span Product Engineering, Custom & Package Applications, BPO, IT Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products. The HCL team comprises over 55,000 professionals of diverse nationalities, who operate from 18 countries including 360 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms. For more information, please visit www.hcl.in
About Control Point Solutions
Control Point Solutions, Inc., founded 20 years ago, is the World’s Largest Manager of Telecom Expense™ providing voice, data, and wireless Telecommunications Expense Management (TEM) services with billions of telecom expenses processed and millions of dollars in disputes resolved – resulting in refunds and recurring financial, time and resource savings for our clients. www.controlpointsolutions.com +1-800-933-5429