Merchant bank sources said the company has not yet finalised the size of thecompanies for the purpose of acquisitions. Since HCL is a cash-rich company,the acquisition will be mainly done by internal resources. The details aboutthe acquisition are being worked out by Rabo, sources said.

It is not immediately known whether the company will go in for an overseasacquisition spree. In fact, many companies including Infosys are in theprocess of identifying infotech firms abroad as part of their organicgrowth, industry sources said. HCL Technologies focuses on four key growthwindows to rapidly increase its revenues and earnings. As a part of itsorganic growth approach the company continues to focus on developing aquality customer base, offering `future- led' services to expand itsexisting client business, actively explore new business and new markets.

Alliances and partnerships is the second growth window for HCL Technologiesand it believes that this will provide access to new clients, technologiesand geographies as well as assist in identification of potential candidatesfor mergers and acquisitions. When contacted, HCL senior officials declinedto comment on the development.

Through the business acquisitions route the company will generate long-termrevenue streams linked to its stock options.

Under this strategy the options are granted subsequent to revenuerealisation and there is a cap on stock options granted to each client wherevesting is largely at market price. Through this approach the company willoffer its services mainly in high growth technology and business domains.

Acquisitions is the company's fourth growth window. It has a multi-prongedM&A strategy of acquisition. The evaluation of M&As will primarily be basedon the quality of the client base and client relationships, technical anddomain expertise in fast-growing areas and scope of improvement. It isplanning to follow a professional approach with competent advisors toexecute M&A transactions.