HCL Technologies, one of the leading software exporters, witnessed a rise in share price on Tuesday after the company said it is in process to buy Volvo Group's external IT business.

The company said, "Entered into a Letter of Intent with the Volvo Group for undertaking an outsourcing engagement for its IT infrastructure and operations services. The total contract value which is for five years is not disclosed."

In addition, HCL would be acquiring from the Volvo Group, its external IT business relating to provision of IT infrastructure, mainframe services and application operation services for an all cash consideration of SEK 1.1 Billion or USD 138 million.

The sale of Volvo's external IT operations is part of sweeping efficiency measures aimed at cutting SEK 10 billion of structural costs.

About 2,600 Volvo staff would be affected by the transaction and offered employment at HCL.

Volvo Group's derived revenue from external customers during last twelve months was SEK 1.6 Billion or USD 190 million.

Shares of H C L Technologies are trading at Rs 865.25, up Rs 8.1, or 0.94% at the Bombay Stock Exchange (BSE) on Tuesday at 3:05 p.m.

The scrip has touched an intra-day high of Rs 868.00 and low of Rs 849.00. The total volume of shares traded at the BSE is 156,596.