Menu
HCL coughs up $162M for Australia's DWS

HCL coughs up $162M for Australia's DWS

Comes off the back of DWS' own acquisitions last year

Danny Wallis (DWS)

Danny Wallis (DWS)

Credit: DWS

HCL Technologies has acquired Australian-headquartered IT service provider DWS for A$162 million in cash as the Indian tech giant looks to stake a bigger claim on Australia and New Zealand.

The all-cash deal will see HCL pay A$1.23 per share for DWS, plus debt, notably higher than the 21 September trading price of .90C.

Following the acquisition, DWS will become a wholly-owned subsidiary of HCL, although no details were provided regarding the role of CEO Danny Wallis and the provider’s 745 consultants,

Wallis, who owns 42 per cent of the publicly listed company’s shares, encouraged remaining shareholders to vote in favour of the deal.

“The  opportunity to realise certain value at a significant premium represents a great outcome for our shareholders, who have been supportive over the company’s long history of its strategy and direction,” he said.

Founded in 1991, DWS has offices in Melbourne, Sydney, Adelaide, Brisbane and Canberra, and provides services in IT consulting, digital transformation, cloud, business analytics and robotic process automation among others. It also established a subsidiary in New Zealand in late 2019.

Last financial year, DWS made two acquisitions, Projects Assured and Object Consulting, both of which caused its 2020 profits to fall by 27 per cent down to A$7.5 million.

However, its revenue from continuing operations was nearly A$168 million, up by almost A$4.5 million, year-on-year, or about 3 per cent.

Underlying pre-tax earnings (EBITDA) was A$28.5  million, an increase of A$2 million, or about 8 per cent compared to the previous year. 

Meanwhile, HCL recently deepened its relationship with Broadcom, which will see broaden its professional services offerings to include Symantec Enterprise Division (SED) consulting services.

It also expanded its existing cloud partnership with Google Cloud, a DWS partner, launching a new dedicated Google Cloud Business Unit.

“We are excited for this expansion of HCL Technologies in Australia and New Zealand and are confident that our combined strengths will further accelerate the digital transformation journeys of our clients and innovations for their customers,"  HCL A/NZ country manager Michael Horton said. 

“DWS has forged a sterling reputation, powered by highly talented consultants who enable organisations to be at the cutting edge of  technology. We look forward to welcoming the DWS team to HCL and creating enhanced global learning and career opportunities for them.”


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags DWSHCL

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments