HCL Technologies is in talks with Sweden-based commercial vehicles operator Volvo Group to buy the latter’s external IT business. The deal is reportedly valued at $138 million. Further, Volvo Group will also outsource its existing IT operations to HCL for five years.

Volvo Group had announced its intention to find an external partner to assume responsibility for its external IT business and IT infrastructure operations in April 2015. The partnership with HCL is expected to provide significant cost savings to Volvo. Volvo also expects to make a capital gain when the contract is signed.

As of now, the two companies have signed a Letter of Intent (LoI) and the signing of the final contract is awaited.  

Also, under the proposed deal, around 2,600 Volvo personnel globally will be given the offer to move over to HCL Technologies. They will, however, continue to work closely with Volvo’s IT services division.