Wipro announced, on Monday, that it is acquiring the Australian entity, Promax Applications Group (PAG), to expand its analytics business. The new entity is to be called Wipro Promax Analytics Solutions Pty Ltd.
Addressing the media over a conference call, K. R Sanjiv, Senior Vice-President and Global Head, Analytics and Information Management, Wipro, said the all-cash deal, valued at Australian $35 million (about Rs.192 crore), was to be consummated within the current quarter.
Mr. Sanjiv said Wipro's analytics business brought in revenues of $600 million annually and was growing at 25 per cent annually. The company's analytics business employs more than 8,000 persons. He admitted that Promax, which was expected to earn revenues of Australian $15-16 million during the current year (financial year July-June), would contribute only “negligibly” to Wipro's overall revenues from its analytics practice.
However, he said the acquisition was “strategic” in nature because the target company had expertise in the trade promotion, marketing and optimisation solution space.
“The deal also brings to Wipro some of Promax's marquee clients,” he said.
The New South Wales-based company has 71 employees and has offices in the U.S., the U.K. and Japan. Mr. Sanjiv said the acquisition would bring to Wipro a “licensable product, which may also be turned into a platform.”
Rishad Premji, Chief Strategy Officer, Wipro, said the company was aiming at acquisitions in three broad areas — those that fill “domain gaps”, those in areas such as analytics and mobility in enterprises and platform-based cloud solutions, and acquiring companies to expand geographical reach in markets such as France and Germany.