Wipro up 3% on acquisition plan of US-based Cybersecurity Firm Edgile

Shares of Wipro moved higher by 3 per cent to Rs 689.80 on the BSE in Tuesday's intra-day trade after the information technology (IT) firm announced that it will acquire Austin, Texas-headquartered Edgile for $230 million. The move, it said, will strengthen the company's play in the cybersecurity services space. The stock had hit a 52-week high of Rs 739.80 on October 14, 2021.

Edgile is recognized by security and risk leaders for its unique business-aligned cybersecurity capability, deep understanding of the changing regulatory environment and enabling cloud transformations that help secure the modern enterprise. In addition, the company's "strategy-first" approach and "Quick Start" solutions will allow the combined entity to deliver enhanced value in strategic cybersecurity services, Wipro said in the regulatory filing. The transaction is expected to be completed before March 31, 2022, subject to regulatory approvals and customary closing conditions.

Edgile is the trusted leader in cybersecurity transformation and risk services, partnering with the world's leading organizations, including 31 per cent of the Fortune 100 and 20 per cent of the Fortune 500. The acquisition is expected to strengthen Wipro’s capabilities in cloud security and risk management space, ICICI Securities said in a note.

Earlier this year, Wipro strengthened its cybersecurity business by acquiring Ampion, a leading provider of cybersecurity services in Australia, and the cybersecurity practice at Capco, a leading consultancy in the BFSI sector in Europe and the US.

Additionally, through its Wipro Ventures arm, the company continues to invest in innovative cybersecurity start-ups, demonstrating the firm's strong commitment towards providing industry leading cybersecurity solutions across sectors and regions, Wipro said.