India's third largest IT company Wipro Ltd today said it has signed a definitive agreement to acquire minority stake in US-based Denim Group for USD 8.83 million (approx Rs 59 crore).
Wipro will acquire 33.33 per cent stake in Denim Group consequent to "issuance of 510 Series A preferred units of Denim Group and 500 Membership Units of Denim Group Management", the company said in a filing.
The investment is expected to be completed during the quarter ended March 2018, subject to stipulated closing conditions, Wipro said.
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Denim Group, an independent application security firm, was established in 2001 and has offices in San Antonio and Austin and has a workforce of around 60 employees. Its revenue stood at USD 11.3 million in 2017.
"This partnership will bring together Wipro's strong digital transformation and cybersecurity capabilities with Denim Groups application security consulting, assessments and implementation services...," Wipro said.
This, along with Denim Groups flagship product 'ThreadFix', the application vulnerability correlation and resolution platform, would offer customers value in minimising cybersecurity risks, it added.
"Wipros investment in Denim Group reflects our continued commitment to assist our customers in simplifying digital risk management by enabling them to roll out secure software faster," Sheetal Mehta, Vice President and Global Head, Cybersecurity and Risk Services, Wipro Ltd said.
It also bolsters Wipros portfolio of digital transformation services and taps into services for embedding security in software development methodologies, Mehta added.
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