The English batsman was bought for his base price of ₹1 crore from the Registered and Available Player Pool (RAPP) list.
Hales has been signed as a replacement for Australian batsman David Warner, who this week flew home from South Africa in disgrace after his role in the ball tampering scandal.
Warner was subsequently banned for a year by Cricket Australia and has now been replaced in the IPL by Hales. He is also the only player from England to feature in the top 10 list of the ICC T20I rankings. Hales has played for Mumbai Indians earlier and his performance has been commendable.
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Sunrisers' move for Hales means that his gamble to become a white-ball specialist despite missing out in the IPL auction has paid off - stressing his availability in the event of any replacements being needed. Despite an emotional address to the media, Warner stonewalled questions about who was aware of the ball-tampering and whether it was the first such incident within the team.
Warner led the Sunrisers to their maiden IPL title in 2016 and had agreed a 120 million Indian rupees deal in January to remain with the team in 2018.
Sri Lankan journalist Daniel Alexander recently tweeted that "Kusal Perera has reportedly rejected an IPL offer to play domestic first-class tournament to work on Test recall".
Sunrisers were quick to announce their new captain in New Zealand skipper Kane Williamson.