Wipro to acquire three units of Applied Value Group for $40M

Wipro Ltd. on Monday announced it will acquire three entities part of the US-based management consulting firm Applied Value Group for $40 million or around Rs 340 crore.

The Indian information technology major, through its subsidiaries, signed a definitive agreement to acquire 100% shareholding in Applied Value Technologies Inc., Applied Value Technologies B.V. and Applied Value Technologies Pte, according to an exchange filing.

The acquisition will augment Wipro’s existing application services capabilities, helping drive new growth opportunities, the company said.

The purchase consideration includes a deferred consideration in the form of earnout, payable subject to achievement of certain performance metrics and conditions. The transaction is expected to be completed at the latest by the end of this month, Wipro said.

Founded in 2021, Applied Value Technologies is headquartered in Massachusetts while Applied Value Technologies is headquartered in Singapore.

Applied Value Technologies BV was founded a year later in Netherlands. These companies provide enterprise applications development and support services for global clientele.

The consolidated revenue stood at $0.8 million for calendar year 2021, $8.7 million in 2022, and $19.4 million in 2023.

Last month, Wipro bagged a four-year deal from the Italian unit of Marelli, an automotive parts manufacturer. The value of the deal is $100 million, according to people in the know.

The four-year project extension focuses on cloud transformation and enhanced operational efficiency to drive innovation and reduce time-to-market, said the company in a release. Wipro had first struck a software engineering contract from Marelli in 2020.

Shares of Wipro on Monday closed 0.4% lower at Rs 308.7 apiece, compared to a 0.4% decline in the benchmark Nifty 50. The stock has risen by 39% over the past 12 months. NDTV Profit