HCL Tech acquires 6.64% stake in UK-based Om Mobile Ventures

Indian IT services firm HCL Technologies has acquired a 6.64% stake in UK-based artificial intelligence (AI) solutions firm Om Mobile Ventures for $2 million, a filing with the Bombay Stock Exchange (BSE) showed. 

HCL Technologies is expected to acquire nearly 2.8 million shares of the company, at a price of $0.71 each, according to the terms of the deal.

Om Mobile Ventures was founded in 2014 and is headquartered in London. It runs an AI software platform called Kalido that uses machine learning algorithms to connect people within enterprise, community, charity or the general public to build connections or networks. Om Mobile Ventures is still at a pre-revenue product development stage.

HCL expects the investment in Kalido to help it integrate the AI-based software platform’s intelligent features into its recently acquired IBM Connections and Digital Workplace solutions.

This week, HCL Technologies reported an 18% increase in revenue for the first quarter ended June 30, 2019 with net profit declining 8%. 

HCL reported a revenue of Rs 16,427 crore compared to Rs 13,878 crore for the corresponding period last year. 

Chief executive officer C Vijaykumar said this was the highest revenue growth in a quarter on a yearly basis since 2011. The revenue growth stood at  2.73%. HCL had reported a revenue of Rs 15,990 crore for the quarter ended March this year.

The company has reported a net income of Rs 2,230 crore compared to Rs 2,431 crore for the same period the previous year. Sequentially, the company reported a decline of 12.54%; it had reported a net income of Rs 2,530 crore for the quarter ended March this year. 

This week, it has also partnered with cloud services provider Oracle’s health arm to accelerate drug trials and reduce the cost of the development process.