Indian information technology provider Wipro Ltd will fully acquire Brazilian IT company IVIA Servicos de Informatica Ltda for $22.4 million (about Rs 170 crore at current exchange rate).
IVIA, based in northeast Brazil, provides services including system development, maintenance, consulting, and project management to clients in sectors such as financial services, transportation, and retail.
In a statement, Wipro said the acquisition would help it set up delivery centres in Brazil’s northeast regions by leveraging IVIA’s workforce. It will also help the IT major further expand its presence in the South American country.
“We continue to make strategic investments in this region and this acquisition will help Wipro address the needs of clients across multiple verticals,” Wipro vice-president and head of Latin America Mukund Seetharaman said.
Wipro’s Latin American presence includes offices in Brazil, Chile, Mexico, Colombia, and Costa Rica.
IVIA founder and chief marketing officer Alexandre Menezes said the acquisition would allow for the company to leverage Wipro’s expertise and services to provide more offerings to its clients.
IVIA, which was set up in 1996, is privately held and has over 700 employees. The company reported revenues of $10.1 million, $12.1 million, and $13.5 million for 2017, 2018 and 2019, respectively.
Wipro said it expects the transaction to be completed by the end of the September quarter. Shares of the IT major ended the day 1.1% down at Rs 225.05 apiece. It reported consolidated net sales of Rs 61,137.6 crore for the 2020 financial year. It also reported profit-after-tax figures of Rs 9,768.9 crore for the same period.
The acquisition of IVIA comes around six weeks after Wipro announced that Thierry Delaporte would be appointed as its new chief executive officer and managing director from July. Until recently, Delaporte was the chief operating officer of Capgemini Group and a member of its group executive board.
