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HCL Technologies exits JV with NEC Corp in India

Zafar Anjum | April 1, 2013
NEC will acquire HCLT’s 49 percent share of NHST, making it a wholly owned subsidiary of NEC.

Japan's NEC Corporation and Indian IT services provider HCL Technologies Limited (HCLT) have agreed for NEC to obtain full control of NEC HCL Systems Technologies (NHST), the IT integration and networking company said on 28 March.

NHST was a joint venture software company that the two IT companies had established in October 2005 to enhance software developing resources in India.

According to the agreement, NEC will acquire HCLT's 49 percent share of NHST, making it a wholly owned subsidiary of NEC.

The subsidiary's name is scheduled to become NEC Technologies India Limited in April 2013, the IT company said in a statement.

NHST has developed software products for the platform business in partnership with the experience and knowledge of HCLT which is one of India's leading tech services company.

The new subsidiary will play a key role in the development and system integration of NEC's solutions business throughout the emerging India and Asia Pacific markets, as well as Europe and the US, NEC said in its statement.

"NEC Technologies India will lead a global deployment of product technology and development," said Takaaki Shimizu, senior vice president of NEC. "The company will become an offshore software development base for systems in Asia Pacific, Europe, the US and Japan, in addition to its current software development for the platform business. Moreover, NEC will strengthen its global sales and support by leveraging the new company's experience and know-how in development, technology and business channels."

 

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