Wipro, a leading global IT services company, has announced its plans to acquire Applied Value Technologies (AVT), a Massachusetts-based IT services consulting firm, in an all-cash deal worth $40 million. The acquisition is expected to be completed by December 31, 2024, subject to regulatory approvals, as per a filing on the Bombay Stock Exchange (BSE). This strategic move is in line with Wipro’s broader business turnaround strategy and aims to strengthen its application services capabilities.
AVT specializes in helping enterprises transform their IT operations through a highly customized and data-driven approach. This acquisition will enhance Wipro’s existing application services portfolio and open up new growth opportunities. The $40 million purchase consideration includes deferred payments tied to AVT achieving specific performance metrics.
Established in 2021 and 2022, AVT operates subsidiaries in Massachusetts, Singapore, and the Netherlands, offering enterprise application development and support services to global clients. Its consolidated revenue has shown significant growth over the years, from $0.8 million in 2021 to $19.4 million in 2023.
This acquisition is the latest in a series of strategic moves by Wipro, including a 27% stake in SDVerse, an automotive software marketplace, for $5.85 million, and a $66 million purchase of a 60% stake in US-based insurtech company Aggne Global earlier this year. Wipro has also recently joined forces with SIAM.AI, a member of the NVIDIA Cloud Partner program in Thailand, to create an AI-powered digital assistant for the country’s Tourism Authority. The assistant, named ‘Sukjai,’ is built using NVIDIA AI Enterprise software, Wipro’s Enterprise Generative AI (WeGA) Studio, and SIAM.AI’s expertise, and aims to enhance tourism experiences while advancing Thailand’s sovereign AI objectives.
In addition to these developments, Wipro has also announced the appointment of Omkar Nisal as the chief executive officer for its Europe Strategic Market Unit (SMU). Omkar will report to Wipro’s CEO and MD, Srini Pallia, and will join the Wipro Executive Board, succeeding Pierre Bruno, who is stepping down.
This acquisition and other strategic moves by Wipro demonstrate the company’s commitment to expanding its capabilities and offerings to better serve its clients and drive growth. With the acquisition of AVT, Wipro is well-positioned to continue its upward trajectory and solidify its position as a leader in the IT services industry.
