Wipro, the prominent IT services and consulting firm, has announced plans to acquire Massachusetts-headquartered Applied Value Technologies (AVT) for $40 million. This acquisition is part of Wipro’s strategic efforts to enhance its existing application services offerings, particularly at a time when the company is undergoing a business transformation. The deal, an all-cash transaction, is expected to close by December 31, 2024, pending customary regulatory approvals, as outlined in the company’s filings with the Bombay Stock Exchange (BSE).
AVT, a company known for its highly customized and data-driven approach to IT operations, has been instrumental in assisting enterprises with IT transformation. Through this acquisition, Wipro aims to augment its capabilities in application services, creating new growth opportunities in a competitive IT services market. According to Wipro’s filing, AVT will help enhance its service offerings, enabling the company to offer more tailored, innovative solutions to clients.
The total purchase consideration for AVT is set at $40 million but will be subject to customary closing adjustments as per the purchase agreement. The deal also includes a deferred consideration, with payments contingent on the achievement of specific performance metrics and conditions. These performance-based earnouts are typical in transactions of this nature, where the future success of the acquired entity is closely tied to its ongoing operations and growth under Wipro’s ownership.
Founded in 2021 and 2022, AVT operates multiple subsidiaries across Massachusetts, Singapore, and the Netherlands. The company provides enterprise application development and support services to a diverse and global client base, a key factor that makes it a valuable addition to Wipro’s portfolio. Over the past few years, AVT has demonstrated impressive growth, with consolidated revenue figures increasing from $0.8 million in 2021 to $19.4 million in 2023.
This acquisition is part of a broader strategy by Wipro to expand its market presence and capabilities. Earlier in 2024, Wipro made notable acquisitions, including a 27 percent stake in SDVerse, an automotive software marketplace platform with clients such as General Motors and Magna, for $5.85 million. The company also acquired a 60 percent stake in Aggne Global, a US-based insurtech firm, for $66 million. These strategic acquisitions reflect Wipro’s commitment to diversifying its portfolio and strengthening its position in key sectors, particularly in domains such as automotive software and insurtech.
Wipro’s CEO, Srinivas Pallia, highlighted in the company’s annual report that Wipro has built a strong, global, and diverse team through these acquisitions, including high-profile deals like Capco and Rizing. Wipro is committed to continuing its acquisition strategy, with a focus on enhancing domain expertise and driving growth through targeted investments in companies that complement its core business.
Through the acquisition of AVT, Wipro is poised to strengthen its application services division and accelerate its digital transformation efforts. This move is in line with the company’s broader objectives to remain competitive in a rapidly evolving IT services market, where agility, customization, and data-driven solutions are increasingly in demand.
