Shares of Wipro jumped 1 percent to Rs 312 on December 17 after the IT major said it will acquire Applied Value Technologies along with its affiliates. To boost its enterprise application services Wipro will acquire 100 percent shareholding in the US-based company.
The acquisition involves a cash consideration of $40 million, along with a deferred earnout linked to performance metrics. Wipro expects the deal to be finalized by December 31, 2024.
Applied Value Technologies creates enterprise application development and support services. Revenues accelerated from US$0.8 million in 2021 to US$19.4 million in 2023 and could be said to be signaling very strong growth momentum.
Broader IT Sector Trends
- TCS expects technology budgets to grow in 2025, particularly in the BFSI sector in the US, as client sentiments improve post the US elections.
- Infosys anticipates a weaker performance in the second half of the fiscal year, particularly in Q4, due to seasonal challenges.
At 9:20 am, Wipro shares were trading at Rs 311, up 0.5 percent on the NSE. Wipro stock has delivered a solid 31 percent gain since the beginning of 2024.
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Source: Moneycontrol
News Desk
