Software services firm Wipro Ltd has agreed to acquire Massachusetts, US-based Applied Value Technologies Inc. (AVT) for $40 million (about Rs 340 crore) in cash.
The acquisition of the IT services consulting firm will help Wipro enhance its application services capabilities and drive new growth opportunities, the Indian company said in a stock-exchange filing.
Wipro said AVT, founded in 2021, helps enterprises transform IT operations through a highly customized and data-driven approach.
Apart from Massachusetts, AVT has subsidiaries in Singapore and the Netherlands. These companies provide enterprise application development and support services for the global clientele. The company’s consolidated revenue for the calendar year 2023 stood at $19.4 million, up from $8.7 million in 2022 and $0.8 million in 2021.
The transaction is expected to be completed by December 31.
Indian IT firms are expanding their service offerings and profitability by acquiring companies that focus on niche segments. Companies like Infosys, Wipro, and HCL Technologies are increasingly turning to M&A to expand into specialized areas like consulting, Generative AI (GenAI), and engineering research and development (ER&D) to enhance growth opportunities in the global market.
In February, Wipro acquired a 60% stake in Aggne Global, a US-based insurtech, for $66 million. This move aimed to bolster Wipro's presence in the insurance sector, particularly in property and casualty (P&C) insurance.
In June, the company completed the merger of its step-down subsidiary, Designit North America, Inc., with Wipro Designit Services, Inc. This merger became effective on July 1. In addition to the North American consolidation, Wipro deregistered its Australian subsidiary, Attune Australia Pty Ltd. Wipro stated that these moves are part of a strategic effort to rationalize and consolidate its group structure.
