HCL Tech acquires 35.5% stake in Aquila

Our Convergence Bureau
20 July 2002

Aquila is a Bangalore-based software solutions provider in the areas of engineering software and services like CAD/CAE PDM/CPC, virtual engineering frameworks, visualisation, image processing and computer game development.

The company has 51 employees with focused skills in these defined areas, operating offshore from Bangalore, catering to both the domestic and the export market. Aquila currently has a client list that includes leading global majors such as Daimler Chrysler, Rieter Automotive, Hewlett Packard and Visionix, among others.

Collaborating to leverage skill sets in engineering
Aquila has proven software development capabilities and the ability to use tools and packages to deliver engineering services. The existing management of Aquila will continue to work with HCL Tech.

The alliance will thus augment HCL Tech's engineering software and services expertise while providing new skills in the area of image processing and computer game development. HCL Tech will be able to leverage Aquila's skills to add engineering service opportunities within its own customer base to create a formidable practice in engineering software and services, image processing and computer game development.

Transaction details
In the current transaction, HCL Tech is acquiring a 35.5-per cent stake in Aquila for a consideration of Rs 55.5 million. HCL Tech will acquire the balance stake in three equal tranches over a period of three years. The purchase consideration for the same is based on the achievement of certain milestones linked to the growth and profitability of Aquila.

Aquila Technologies president and CEO Deepak Vinchhi says: “This alliance with HCL Tech will strengthen our credibility and enable us to address large-sized orders. Leveraging our combined strengths, we should be able to grow the business substantially.“