Wipro Ltd on Monday said it will acquire Promax Applications Group (PAG), an Australian-based company for $36.51 million (AUD 35 Million).
Promax has products in business analytics segment and currently caters to the food and beverages and wine and beer sector. The company has 71 employees and 45 clients. The majority of its customers are based in the US and Europe.
This is the first acquisition made by Wipro since Mr T.K. Kurien took over as CEO last year. The acquisition is expected to be completed at the end of the current quarter ending June. Wipro hopes that subsequently, it will add to $600 million in revenues for the fiscal 2013.
During the recent quarter, the Mr Kurien had talked about the need to expand its business analytics portfolio in order to grow faster than the industry.
“Analytics is a growth driver for Wipro and the acquisition of Promax Applications Group will strengthen our leadership in analytics and information management services,” said Mr K.R. Sanjiv, Senior Vice-President and Global Head, Analytics and Information Management, Wipro.
Wipro has about 8,000 employees in the analytics vertical and said that will leverage this for implementations in similar verticals.
“We will take this product and look to extend it to other verticals like retail, consumer products and goods, banking and insurance,” said Mr Sanjiv.
Avendus Capital acted as the exclusive financial advisor to Wipro on this transaction and the newly-formed entity will be called Wipro Promax Analytics Solutions Pty Ltd. Broadly classified as trade promotion, according to industry estimates, consumer focused companies spend 12-25 per cent of their annual sales on this. Wipro had given a flat guidance for the first quarter of FY 13 and this acquisition should add to its growth rates going forward, according to analysts.