Azim Premji-owned Wipro announced on Monday, 16 December, that it will acquire 100% shareholdings of the IT consulting firm Applied Value Technologies (AVT). This will be a $40 million deal, underscoring another major acquisition this year.
The IT major Wipro has been on an acquisition spree in 2024. Wipro acquired a 27% stake in SDVerse, an automotive software marketplace platform with General Motors and Magna, for $5.85 million. After that, Wipro acquired a 60% stake in Aggne Global, an insurtech company, for $66 million.
This acquisition will increase Wipro’s application services capabilities. The deal will be an all-cash transaction expected to be completed by December 31, 2024, BSE (Bombay Stock Exchange) filling shared.
The Massachusetts-headquartered Applied Value Technologies was founded in 2021 and specialises in enterprise applications development and support services. Expanding globally with operations in Singapore and the Netherlands, the company has shown significant growth over the years. Its revenue grew from $0.8 million in 2021 to $19.4 million in 2023.
AVT helps businesses transform IT operations through a highly customised and data-driven approach, and this acquisition will help Wipro unlock new growth opportunities. Wipro and AVT’s purchase consideration of $40 million will be subject to customary closing adjustments as per the terms of the agreement. It includes different considerations in the form of earn-outs, payable subject to the achievement of certain performance metrics/conditions.
