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News: Wipro informed the stock exchange that it will acquire a 100% shareholding in Applied Value Technologies, Inc., Applied Value Technologies B.V. and Applied Value Technologies Pte Limited, a part of the Applied Value Group. The said agreement is for a cash consideration of US$ 40 million. The company helps enterprises transform IT operations through a highly customized and data-driven approach. AVT will augment Wipro’s existing application services capabilities, helping drive new growth opportunities. The transaction is expected to be completed by 31 December,2024.
Views: With AVT CY23 Sales at US$ 19.4 mn, the deal implies a valuation of 2.1X CY23 Price to Sales. The AVT acquisition, albeit modest sized, aligns with Wipro’s strategic focus on strengthening its IT transformation capabilities amid rising demand for application modernization.
Impact: Neutral