HCL Tech buys CRM vendor PowerObjects for $46 mn

HCL
IT services provider HCL Technologies announced the acquisition of PowerObjects, a provider of Microsoft Dynamics CRM in North America, for $46 million.

The acquisition of Minneapolis-based PowerObjects will boost HCL’s global applications business, which offers transformational programs and application management. Microsoft Dynamics is one of the fastest growing CRM products in the market.

IT market research firm Gartner has projected that CRM will be a $36 billion market by 2017, and will grow faster than any other enterprise software category. Within CRM market, Microsoft Dynamics CRM outpaced market growth at 21.7 percent in 2014 against an industry growth of 14 percent.

“The acquisition reinforces our commitment to helping clients who rely on Microsoft as a strategic platform,” said Greg Palesano, executive vice president and global head of application services.

There will be no job reduction after the takeover of PowerObjects. More than 250 PowerObjects employees will be moving to HCL.

PowerObjects had trailing twelve-month revenues of approximately $37 million as of September 30, 2015.

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