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IT services’ major Wipro Ltd said on Thursday it has signed an agreement to acquire Ampion, an Australia-based provider of cybersecurity, DevOps and quality engineering services, for a cash consideration of $117 million.
Earlier in March, Wipro signed an agreement to acquire Capco, a global management and technology consultancy to the BFSI industry, for a cash consideration of $1.45 billion. Wipro’s stocks closed the day at ₹416.70, about 1 per cent higher than the previous day’s closing price.
Also read: What the Capco deal means for Wipro stock
Ampion was formed through the merger of IT services providers ‘Revolution IT’ and ‘Shelde’. Revolution IT was an IT services company in Australia founded in 2004 and Shelde was a digital IT security company founded in 2010, a press statement from the company said.
Offices in Australia
Ampion is headquartered in Melbourne, with offices in Sydney, Brisbane, and a zone 3 facility in Canberra. The Australian market is undergoing significant disruption through the adoption of cloud, DevOps, analytics and resilience-related digital capabilities, across enterprises and public sector entities.
Emkay Global, in its note to investors, said the acquisition is in line with Wipro's growth strategies under the new operating model emphasising investments in focus geographies. “The acquisition will strengthen Wipro's presence in ANZ markets, widen client reach and drive localisation. Wipro derives 5 per cent of its revenues in AUD and its localisation in Australia stood at 40 per cent in FY20. The addition of 500 local employees through Ampion will give a boost to Wipro's localisation efforts in Australia ,” Dipesh Mehta said in his note.
Demand from customers
Wipro and Ampion’s combined offerings will bring scale and market agility to respond to the growing demands of customers. Wipro’s new operating model emphasises strategic investments in focus geographies, proximity to customers, agility, scale and localisation, a press statement from the company said.
“We see Ampion as a complementary force that will help us expand our footprint and accelerate our journey in the Asia Pacific region,” said NS Bala, CEO – APMEA, Wipro Ltd.
“Our clients, employees and the entire market ecosystem will tremendously benefit from the synergies of Ampion and Wipro’s combined portfolio of transformation offerings,” said Jamie Duffield, CEO, Ampion.
The acquisition is subject to customary closing conditions and regulatory approvals and is expected to close in the quarter ending June 30.
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