HCL Technologies acquires Cisco’s SON technology
- HCL Technologies announced its intent to acquire Cisco’s Self-Optimizing Network (SON) technology in all cash deal at around $50 million (Rs 378 crore).
- The acquisition will help HCL to meet its growing needs of its customers in the telecommunications industry, which includes tier-one communications service providers globally.
- SON is a multi-vendor multi-technology (MVMT) solution that optimizes the Radio Access Networks (RAN) for 2G-5G communication. It helps customers boost performance, harmonize the multiple technologies that comprise a RAN and maximize the capabilities of existing infrastructures, resulting in reduced capital and operational expenditures.
- As part of the deal, some of the employees who work on Cisco’s SON technology will move from Cisco to HCL. HCL, however, did not disclose details about the number of employees.
- HCL Technologies Corporate Vice President Sukamal Banerjee said, “HCL’s decision to make this acquisition comes in line with our Mode 3 (products and platform) strategy. As we expand footprint in this space and support the mobility needs of customers; the SON products and services will now be included in our telecommunications offerings. This will gain further importance with 5G networks.”
- Both parties will file for approval from CFIUS (Committee on Foreign Investment in the US) and under FEMA (Foreign Exchange Management Act, 1999) in India as well as the Brazilian Administrative Council for Economic Defense.
- Cisco, in a separate statement, said supporting its customers’ and employees’ success is a top priority for the company. “We continually look to optimize our business and have decided to divest of our SON business to our trusted IT partner HCL Technologies Ltd. Divestiture of the SON business will allow Cisco to focus our resources on 5G core and IP infrastructure”, it added.
- The said business unit is based in San Jose, California in the US and has offices in Israel and India. The deal is expected to be completed by January 2021.
- Last year, HCL Technologies had completed its $1.8 billion acquisition of select IBM products entailing seven products in areas including security, marketing and collaboration solutions and representing a total addressable market of more than $50 billion.
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