Wipro said it would buy Australia-based cyber security, DevOps and quality engineering services company Ampion for $117 million in an all cash deal.
The acquisition is part of Wipro CEO Thierry Delaporte’s strategy to go inorganic to add clients and local employees in key markets.
Since taking over as Wipro’s CEO in July, Thelaporte has committed nearly $1.74 billion for acquisition of five companies, including UK-based IT consulting firm Capco for $ 1.45 billion, which the company announced in March.
Ampion was formed through the merger of IT services providers Revolution IT and Shelde. Revolution IT was an IT services company in Australia founded in 2004 and Shelde was a digital IT security company founded in 2010 in Australia.
The merged entity, Ampion, is headquartered in Melbourne, with offices in Sydney, Brisbane, and Canberra. Wipro said in a filing that Ampion’s annual revenue run rate for the year ended June 30, 2020 stood at $85.5 million.
The Australian market is undergoing significant disruption through the adoption of cloud, DevOps, analytics and resilience-related digital capabilities, across enterprises and public sector entities. Wipro and Ampion’s combined offerings, powered by engineering transformation, DevOps and security consulting services will bring scale and market agility to respond to the growing demands of customers.
“Ampion has a success- ful track record and enjoys immense credibility with leading enterprises in the region, a collaborative work culture, and significant local subject matter expertise,” said NS Bala, CEOAPMEA at Wipro. “We see Ampion as a complementary force that will help us expand our footprint and accelerate our journey in the Asia Pacific region.”
The acquisition is subject to customary closing conditions and regulatory approvals and is expected to close in the quarter ending June 30, 2021.
“Our clients, employees and the entire market ecosystem will tremendously benefit from the synergies of Ampion and Wipro’s combined portfolio of transformation offerings,” said Jamie Duffield, CEO at Ampion. “We believe that Ampion’s experience, talent, capabilities and proven client credentials in ANZ, coupled with Wipro’s global scale, leadership in technology, and a deep understanding of domain and delivery, will make us a truly formidable team.”
Delaporte has been looking at strategic acquisitions to add capabilities in the digital technology areas and expand the Bengaluru-headquartered IT services company’s presence in emerging markets.