Volvo has signed final agreement for sale of IT operation

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Volvo Group Press Release / February 16, 2016

Volvo Group has entered a final agreement with HCL Technologies for the sale of its external IT operation and the operation of its IT infrastructure.

The transaction is expected to be implemented on March 31, 2016, following the fulfillment of certain conditions and will entail both sustained cost savings and a capital gain corresponding to SEK 900 million (US$105.7 million).

The capital gain will have a positive impact, in a corresponding amount, on the Volvo Group’s operating income and financial net debt in the first quarter of 2016.

In October 2015, the Volvo Group announced that it intended to divest its Volvo IT operation and outsource the operation of its IT infrastructure to HCL Technologies, a global IT supplier with extensive experience in industry-wide deliveries to major international companies.

The capital gain will be recognized in the segment for Corporate Functions, Group Functions and Other.

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Volvo completes sale of IT operation

Volvo Group Press Release  /  April 1, 2016

The Volvo Group has completed the final agreement with HCL Technologies for the sale of its external IT operation and related assets and the outsourcing of its IT infrastructure.

As announced earlier the transaction was implemented on March 31, 2016 and will entail both sustained cost savings and a capital gain corresponding to SEK 900 M.

The capital gain will have a positive impact, in a corresponding amount, on the Volvo Group’s operating income and net financial debt in the first quarter of 2016.