Wipro's share price jumps by over 1% after $117 million acquisition of Australian cybersecurity firm Ampion
- Indian IT software exporter
Wiprohas acquired the Australian cybersecurity firm, Ampion, for a whopping $117 million.
- The company’s share price was up by 1.8% as markets opened today morning.
- Wipro will be absorbing the Ampion’s 500-strong workforce and will keep its CEO, Jamie Duffield, at the helm of operations.
AdvertisementWipro is doubling down on getting a foothold in the Australian continent with its latest acquisition of Ampion. The deal is for a whopping $117 million in cash, according to the regulatory filing.
The India IT major’s share price was up by 1.8% as markets opened today morning but settled at around 1.1% above yesterday’s closing at 10:30 am. The company's stock has gained over 8% this year, so far.
Ampion is a leading player in the Australian market when it comes to providing cybersecurity, DevOps and engineering services. The Melbourne-based business has a local team of 500 consulting and technology specialists and 150 clients already in the bag.
According to Wipro, the leadership of both companies will collaborate to finalise the brand strategy in Australia and New Zealand. Ampion will retain its operational identity during the initial period on integration, which is from six to 12 months.
The financial impact of the deal won’t be reflected in this quarter’s number. The acquisition is likely only to be finalised in the three months ending on June 30 and will be a boost to Wipro’s first quarter earnings of the financial year 2021-22.
“Wipro’s new operating model emphasises strategic investments in focus geographies, proximity to customers, agility, scale and localisation. The acquisition of Ampion is an important step for Wipro in this direction,” the company said in its press release.
The chief executive officer (CEO) of Ampion, Jamie Duffield, will continue to lead the business and take on a role within the Wipro’s leadership team in Australia. And all existing employees are expected to stay on even after the integration.
“We see Ampion as a complementary force that will help us expand our footprint and accelerate our journey in the Asia Pacific region,” said N.S. Bala, CEO for Asia Pacific and Middle East region at Wipro.
The news comes within a month of Wipro announcing its largest acquisition ever in March of the technology consulting company, Capco, to strengthen its role in global financial services.
Wipro, which saw a major overhaul in strategy as its new CEO — Thierry Delaporte — came on board in June, last year. The company’s current impetus is on ‘profitable growth’ and it has been on a buying spree during the course of the pandemic.
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