HCL Axon, a division of HCL Technologies, has entered into a strategic partnership with UCS Group, to takeover latter's Entreprise Solutions SAP practice.

The acquired practice is a division of UCS Solutions and offers Tier I Retail and Wholesale SAP project implementation.

It should be noted that the retail vertical is a key growth area for SAP and for HCL. The transaction entails an all cash consideration of US$7.7 million.

According to a company official, the carve-out will deepen HCL AXON's SAP capabilities with best-in-class SAP Retail Industry Solutions (IS) , and bring proven competency in IS Retail, which further increase the global delivery capabilities, including a significant boost to the company's market presence in South Africa.

In addition, the move will also allow UCS Group to grow its annuity services business internationally and to support the growth of its SAP All in One business.

The effective date of the transaction is August 1, 2009.