Wipro To Acquire Harman’s US-Based DTS Business Unit For $375 Mln
The acquisition will expand Wipro’s engineering R&D services offerings by enhancing its AI-powered digital engineering and device engineering
(The Corner Office Journal) -- Wipro Ltd. agreed to acquire US-based Digital Transformation Solutions (DTS) business unit of Harman International Industries Inc. for up to $375 million in cash to expand its engineering research & development (ER&D) services.
Under the pact, the Indian IT services firm will acquire a 100% stake in Harman Connected Services Inc., its subsidiaries and certain other assets (collectively, DTS) from Harman, a Samsung company, Wipro said in a stock exchange announcement.
The purchase consideration includes earn-outs, it added.
The Bengaluru-based firm said the acquisition expands Wipro’s ER&D service offerings and capabilities by enhancing its AI-powered digital engineering and device engineering, including design-to-manufacturing, across technology, industrial, aerospace, healthcare and consumer industries.
Headquartered in Connecticut, DTS is a global provider of ER&D services as well as IT services to the industrial, consumer, hi-tech and healthcare & life sciences sectors. It has more than 5,600 employees in 14 countries, including in India, US, South Korea, UK, Poland and Germany.
“Their specialized engineering expertise, combined with Wipro’s consulting-led, AI-powered capabilities, will significantly enhance the value we deliver to clients,” Wipro Managing Director and Chief Executive Officer Srini Pallia said in a statement.
DTS reported a consolidated revenue of $314.5 million in the year ended 31 December 2024, up from $308.2 million a year earlier. About 85% of revenue in 2024 came from services, while 15% from the product offerings.
Deal Nitty-Gritty
As part of the agreement, over 5,600 DTS employees, including key leadership, across the Americas, Europe and Asia will transition to Wipro upon closing of the transaction, according to the statement.
Wipro said as part of the acquisition, the company will also enter into a multi-year strategic agreement with Harman and Samsung, further deepening the relationship and creating new avenues for joint growth and transformation.
The acquisition, expected to close by 31 December 2025, is subject to regulatory approvals. Upon deal completion, DTS will be integrated into Wipro’s Engineering Global Business Line.
Deutsche Bank Securities acted as the financial advisor to Harman.
Note: $1 = 87.0610 Indian rupees
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