Singapore Markets closed

IBM to sell some of its software products to HCL for $1.8 billion

1 / 2

People walk in front of the HCL Technologies Ltd office at Noida

People walk in front of the HCL Technologies Ltd office at Noida, on the outskirts of New Delhi April 17, 2013. HCL Technologies Ltd, India's fourth-biggest software services provider, beat analysts' estimates with a 73 percent rise in quarterly profit after winning orders and reducing staff for the second quarter in a row. REUTERS/Mansi Thapliyal (INDIA - Tags: BUSINESS SCIENCE TECHNOLOGY)

(Reuters) - International Business Machines Corp <IBM.N> said on Thursday it will sell some of its software products business to Indian software services exporter HCL Technologies <HCLT.NS> for $1.80 billion.

The software products in scope represent a total addressable market of more than $50 billion, IBM said in a statement.

The company will divest seven of its products, including its secure device management product BigFix, marketing automation product Unica and workstream collaboration product Connections.

"The products that we are acquiring are in large growing market areas like security, marketing and commerce which are strategic segments for HCL," said C Vijayakumar, Chief Executive Officer of HCL.

The transaction is expected to close by mid-2019.

IBM's software sales, which have slowed down in the past, also weighed on its latest quarterly revenue.

HCL's revenue from software services business, however, rose about 21 percent to 87.11 billion rupees, leading the company to beat its second-quarter profit.

IBM is also in the process of buying U.S. software company Red Hat Inc <RHT.N> for $34 billion, including debt.

(Reporting by Vibhuti Sharma in Bengaluru; Editing by Shailesh Kuber)