IBM To Sell Software Products To HCL For $1.8B: Key Takeaways
Zacks Investment Research | Dec 06, 2018 08:14PM ET
International Business Machines Corporation (NYSE:IBM) recently entered into a definitive agreement to divest seven software products to HCL Technologies for approximately $1.8 billion.
Per the terms of the contract, IBM intends to sell Appscan, Bigfix, Commerce, Connections, Notes & Domino, Portal and Commerce software solutions.
The solutions are estimated to have a total addressable market (TAM) exceeding $50 billion. Notably, the software offerings include three on-premise solutions.
The business deal is anticipated to conclude within mid-2019, subject to customary regulatory approvals.
IBM’s shares were up almost 2% yesterday, while that of HCL which trades under NSE (India) with the ticker “HCLTECH” were down approximately 5%.
Notably, shares of IBM have shed 15.5% year to date, compared with the Zacks Investment Research
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