Wipro gains on acquiring Texas-based cybersecurity consulting provider, Edgile

Wipro advanced 2.84% to Rs 685.30 after the firm signed an agreement to acquire 100% stake of Edgile, a cybersecurity consulting provider headquartered in Austin, Texas for a cash consideration of $230 million by 31 March 2022.

Edgile is recognized for its 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 will acquire 100% stake of Texas-based cybersecurity consulting provider, Edgile, for a cash consideration of $230 million. The transaction is expected to be completed before 31 March 2022.

Wipro and Edgile will develop Wipro CyberTransform, an integrated suite that will help enterprises enhance boardroom governance of cybersecurity risk, invest in robust cyber strategies, and reap the value of practical security. Wipro CyberTransform will enable organizations to accelerate their digital transformation and operate in virtual, digital supply chains in a secure manner.

Abry Partners, a minority private equity investor in Edgile, will fully exit its investment in Edgile as a result of this transaction. Piper Sandler acted as financial advisor to Edgile and Stone Key Partners LLC acted as financial advisor to Wipro for the transaction.

Wipro reported 9.6% fall in consolidated net profit to Rs 2,930.7 crore in Q2 FY22 from Rs 3,242.6 crore in Q1 FY22. Revenue from operations increased by 7.8% Q-o-Q (quarter-on-quarter) to Rs 19,667.40 crore during the quarter.

Wipro is a leading global information technology, consulting and business process services company.

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