Indian IT firm HCL Technologies Ltd said Monday it has signed an initial agreement to sell its entire stake in its UK joint venture with State Street Corp to the Boston-headquartered investment management firm.
New York Stock Exchange-listed State Street intends to buy the 49% stake it doesn’t already own in Statestreet HCL Services for about $170 million plus its net book value, which takes cost of assets into consideration. The JV's annual revenue is around $97 million.
The two companies formed the JV in 2012. They expect to complete the share transfer in the April-June quarter of 2024.
“This integration is a natural evolution of our successful relationship with HCLTech,” said Mostapha Tahiri, executive vice president and incoming Chief Operating Officer of State Street Corp, in a statement. “By creating additional scale, we remain committed to further advancing our operational model with client needs at the centre.”
With about $3.7 trillion in assets under management, State Street provides investment servicing, management and research and trading institutional investors. It has a presence in more than 100 markets.
The deal comes as a part of State Street’s transformation plan. In October, it appointed Arindam Banerrji as country head for India. The latest development will streamline its India operations, as a part of its strategy of simplifying its global operating model.
“Bringing the State Street HCL Services capabilities and expertise in-house will create a more simplified model to facilitate faster decision making and a more effective and efficient experience for its clients,” the statement said.
