Information technology (IT) services provider Wipro on Monday announced it had signed an agreement to acquire Australian analytics company Promax Applications Group (PAG) for A$35 million (around $36.5 million or Rs 192 crore).
It expects the all-cash deal to be closed this quarter, though its “impact on its revenues during the quarter will be negligible”. The newly formed entity will be called Wipro Promax Analytics Solutions Pty Ltd.
Promax derives its revenues by licensing software products and solutions in trade promotion planning, management and optimisation. Founded in 1989, the New South Wales-headquartered company employs 71 people across the globe. The company, which boasts of companies such as Johnson & Johnson, L’Oreal, Kraft, Kimberly Clark and Henkel as its customers, is estimated to close its accounting year ending July 30 with A$ $15-16 million in revenues.
|WIPRO’S RECENT ACQUISITIONS|
|SAIC’s Oil & Gas
to oil majors
|127||2008||ADM for cards, capital
markets & corporate
Rishad Premji, chief strategy officer of Wipro’s IT services business, said the acquisition was in line with the company’s strategy to develop strong capabilities in emerging technology areas.
“Even though PAG is based out of Australia, some of its largest implementations were done in Europe and the US. It has over 45 clients across different verticals like food & beverage, pharma and consumer goods. Its profit margins are broadly in line with our IT services revenues,” said Premji.
Analytics & information management practice within Wipro’s IT services business employs 8,000 people. The practice contributed about $600 million to Wipro’s IT services business in 2011-12, and is growing upwards of 20 per cent annually.
“Analytics is a key growth driver of Wipro’s growth strategy. The acquisition of Promax Applications Group will strengthen Wipro’s positioning and capability in management, analytics & optimisation of trade promotions, and further extends our leadership in analytics and information management services,” said K R Sanjiv, senior V-P and global head, analytics and information management.
According to industry estimates, consumer-focused companies spend 12 to 25 per cent of their gross annual sales on trade promotions. Organisations are increasingly leveraging analytics to maximise return on investment in trade promotions.
Wipro, known for its ‘string of pearls’ acquisition strategy, has been focusing on buying assets with niche focus.
Last year, it had acquired SAIC’s global oil and gas technology services business for $150 million, in a move that expands it offerings beyond its core of financial services.
The deal brought into Wipro’s capabilities a pool of onshore domain experts — nearly 1,500 — with presence in major oil and gas markets in North America, Europe and West Asia.
Avendus Capital acted as the exclusive financial advisor to Wipro on this transaction.
Do not be surprised if by early next year internet users see internet domain names that ends with .bank, .web, .online, .space and many more.