HCL Technologies share price fell in trade today after the firm announced the acquisition of US firm- Strong-Bridge Envision to enhance the 'Digital Transformation Consulting capabilities'.
HCL Technologies share price closed 2.11% or 21 points lower at 1,006.55 level compared to the previous close of 1028.20 on BSE.
The stock fell as as much as 2.29% to Thursday's low at Rs 1004.65 level on BSE.
The shares climbed 1.2 percent up to intraday high of Rs 1040.50 in the early trading session but have been on a downfall since then.
Although the stock gained 5.3 percent in one year, it has fallen more than 5 percent in one month and over 3.3 percent in the last week. It has under performed the sector by 1.62 percent.
HCL Tech has moved below its 50 and 150-day simple moving average today. The stock has been trading above 100 and 200-day moving average. With a trend reversal, as the stock has fallen after 2 days of consecutive gain.
Strong-Bridge Envision, headquartered in Seattle, WA, is a digital consulting firm specialising in customer experience strategy, business transformation, and change management.
As per the regulatory filing by HCL, the acquisition of the US-based firm is expected to be completed by April 2019.The size of the buyout is for Rs 4.5 crore, which includes Rs 42 crore upfront and Rs 0.3 crore potential earn-out linked to target achievements.
As per the report "SBE will enhance HCL's digital consulting offerings with their strong capabilities in digital strategy development, agile program management, business transformation, and organisational change management."
The report submitted also quoted Rob Novick, Managing Director at Strong-Bridge Envision saying, "This collaboration will bring SBE's customer experience legacy and 200 experienced SBE employees from across various industries and top-tier consulting firms to the HCL family".
Sourced from Business Today