Wipro Ltd. , the Bengaluru-based IT services giant, is making strategic moves to boost its growth prospects, with a particular emphasis on its Engineering Research & Development (ER&D) segment. The company is adopting an inorganic growth approach, mirroring strategies employed by industry peers such as Infosys.

ER&D Segment Focus

Wipro is zeroing in on its ER&D segment as a key driver for future growth. This strategic shift aligns with the evolving demands of the tech industry, where research and development capabilities are becoming increasingly crucial for maintaining a competitive edge.

Inorganic Growth Strategy

The company's focus on inorganic growth suggests a proactive approach to expanding its capabilities and market reach. This strategy could involve potential acquisitions, partnerships, or collaborations to strengthen Wipro's position in the ER&D space.

Recent Equity Allotment

In a recent development, Wipro has made a significant move in its employee stock ownership plan. According to the latest LODR (Listing Obligations and Disclosure Requirements) data:

This allotment was made pursuant to the exercise of Employee Stock Option Plans (ESOPs), underscoring Wipro's commitment to employee ownership and aligning staff interests with the company's long-term success.

Industry Trends

Wipro's strategic focus on ER&D and inorganic growth mirrors similar moves in the IT services sector. For instance, Infosys, another major player in the industry, recently announced an acquisition, highlighting the competitive nature of the market and the importance of strategic expansion.

As Wipro continues to evolve its business strategy, investors and industry watchers will be keen to see how these initiatives translate into growth and market positioning in the highly competitive IT services landscape.

Wipro Limited , a leading global information technology, consulting, and business process services company, has announced a significant move to bolster its Engineering Research & Development (ER&D) and IT services capabilities. The company has signed a definitive agreement to acquire Harman Connected Services Inc. and its subsidiaries, collectively known as DTS, from Harman International Industries, Inc. for a consideration of up to $375 million.

Strategic Acquisition Details

The acquisition involves Wipro (through its subsidiaries) purchasing 100% shareholding in DTS. The deal, which includes earn-outs, is valued at up to $375 million and will be settled in cash. Wipro expects to complete the transaction by December 31, 2025, subject to anti-trust approvals required under U.S. competition laws and other necessary regulatory clearances.

Expanding ER&D and IT Service Offerings

DTS is a global provider of ER&D and IT services, headquartered in Connecticut, USA. The acquisition is set to enhance Wipro's capabilities in several key areas:

• Embedded Software
• Digital Engineering
• Design Thinking
• Device Engineering
• Cloud & Infrastructure services
• Data Analytics & AI
• Enterprise Automation
• Customer Experience

This strategic move aligns with Wipro's goal to strengthen its position in AI-powered digital engineering and device engineering, spanning across technology, industrial, aerospace, healthcare, and consumer industries.

Global Reach and Expertise

With the integration of DTS, Wipro gains access to a workforce of over 5,600 employees spread across 14 countries, including India, the United States, South Korea, the United Kingdom, Poland, and Germany. This expansion significantly enhances Wipro's global presence and service delivery capabilities.

Financial Insights

DTS has demonstrated consistent performance over the past three years:

For the calendar year 2024, approximately 85% of DTS's revenue was derived from services, while the remaining 15% came from product-related activities.

Synergies and Future Outlook

The acquisition is expected to create synergies by combining DTS's personalized, high-touch service model with Wipro's global scale, advanced technology ecosystem, and extensive resources. This combination aims to provide clients with the best of both worlds: the agility and precision of a specialist provider coupled with the reach and capabilities of a global leader.

Wipro's strategic move reflects the company's commitment to expanding its service offerings and strengthening its position in the competitive IT and ER&D services market. As the integration progresses, industry observers will be keen to see how this acquisition enhances Wipro's capabilities and market position in the rapidly evolving technology landscape.

Note: This acquisition is subject to customary closing conditions and regulatory approvals.