Mubasher: IBM is selling some of its software assets to HCL Technologies, an Indian technology company, for $1.8 billion.

Under the largest deal ever by an information technology (IT) services provider based in India, HCL will purchase seven software platforms from IBM, including marketing automation software Unica and secure-device management product BigFix, which would allow the Indian company an access to a wider range of clients.

The deal will help HCL generate additional revenue of around $650 million in the second year of the acquisition on run-rate basis, but it would take nearly $25 million hit in the first year.

The transaction provides IBM an opportunity to further trim its businesses, as it directs its focus on cloud computing.

The US tech giant endured slowing software sales and faltering demand for mainframe servers.

“The products that we are acquiring are in large growing market areas like security, marketing and commerce which are strategic segments for HCL,” the Indian tech firm’s CEO C Vijayakumar said.

The company plans to fund the deal, which is set to close by the middle of the next year, via internal accruals and debt of $300 million at close, paying the most of the acquisition price after the first year.