HCL Technologies share price rallied nearly 3% in early trade on Wednesday after the IT major announced the expansion of strategic partnership with Deutsche Apotheker- und Ärztebank eG (apoBank), Germany’s largest cooperative primary bank. HCL Tech shares gained as much as 2.95% to ₹1,472 apiece on the BSE.
HCL Technologies will accompany apoBank with an outcome-oriented managed services model that delivers resilient, scalable, high quality and compliant Digital Foundation services, enabling apoBank to deliver fast and secured banking services to its customers, the company said in a regulatory filing.
The estimated total contract value of the deal is $278 million over a duration of 7.5 years, implying annual contract value of $37 million.
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apoBank became a HCLTech client in 2021 through a partnership in application services.
“The new contract will result in a significant expansion in the relationship. We look forward to working with apoBank to help them serve their customers by leveraging our comprehensive portfolio of managed infrastructure and cloud services and our longstanding experience with Avaloq,” said Sudip Lahiri, Executive Vice President and Head of Financial Services, Europe, HCL Technologies.
HCL Tech is a strategic partner of Avaloq, a leading provider of banking technology and services, and has strong expertise with Avaloq’s core banking system. In 2022, HCLTech acquired Swiss company Confinale, a digital banking and wealth management consulting specialist and Avaloq implementation partner.
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Brokerage firm Morgan Stanley said that the deal signifies continuing large deal win momentum in financial services vertical and significant expansion of an existing client relationship, according to media reports.
It believes large deals provide comfort on the ability of HCL Technologies to achieve full year revenue guidance, a report said.
Morgan Stanley maintained an ‘Overweight’ rating on HCL Tech shares with a target price of ₹1,650 apiece.
At 9:30 am, HCL Tech shares were trading 1.57% higher at ₹1,452.20 apiece on the BSE.
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Published: 12 Jun 2024, 09:33 AM IST