Wipro to Acquire IT Consulting Firm Applied Value Technologies

Wipro Ltd announced its plan to acquire Massachusetts-based IT consulting firm Applied Value Technologies (AVT) for up to $40 million. The acquisition, an all-cash deal, is expected to close by December 31, 2024, subject to customary closing adjustments. The agreement includes a deferred earnout, contingent on meeting specific performance metrics, as per Wipro’s regulatory filings on December 16, 2024. Wipro shares, as of 10 AM are trading at ₹308.60, down 0.60 points (0.19%) today, with a 29.35% gain year-to-date and a 38.62%increase over the past year.

About Applied Value Technologies

Founded in 2021, AVT specialises in enterprise application development and support services. The company operates globally with subsidiaries in Singapore and the Netherlands. AVT’s revenue has shown growth over the past three years:

AVT employs a data-driven approach to transform enterprise IT operations. The acquisition is to strengthen Wipro’s existing application services portfolio and is positioned to create growth opportunities.

Wipro’s Recent Acquisitions 

Wipro has been actively pursuing acquisitions in 2024 to boost its service offerings. Earlier this year, Wipro acquired:

• SDVerse: A 27% stake in the automotive software marketplace for $5.85 million.
• Aggne Global: A 60% acquisition of the US-based insurtech firm for $66 million, expanding its insurance sector presence.

Additionally, Wipro merged its North American subsidiary, Designit North America, with Wipro Designit Services in July 2024 and deregistered its Australian subsidiary Attune Australia Pty Ltd as part of its structural consolidation efforts.

In conclusion, Wipro’s acquisition of AVT for $40 million aligns with its strategy to strengthen application services. The deal shows the growing trend among Indian IT firms, including Infosys and HCL Technologies, to leverage mergers and acquisitions to expand into niche markets such as consulting, Generative AI, and engineering research and development. The transaction is expected to be finalised by December 31, 2024.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.