HCL Technologies, one of the leading software exporters, announced that the company 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.

Anant Gupta, President & CEO said, "HCL's engagement with Volvo is especially satisfying given that we have the opportunity to create additional value for such a forward looking organization. It is  also pleasing to note that skilled personnel will be joining HCL and our culture will further flourish globally. I take this opportunity to welcome Volvo and its customers to the large network of value-creating relationships we already have in the  Nordics."

Shares of the company gained Rs 6.05, or 0.71%, to trade at Rs 863.20. The total volume of shares traded was 136,439 at the BSE (2.44 p.m., Tuesday).