Wipro's Power Play: Acquires Harman Connected Services' ER&D Arm for a Staggering $375 Million

In a significant strategic maneuver that underscores its aggressive growth ambitions, global information technology powerhouse Wipro has announced a definitive agreement to acquire the Engineering R&D (ER&D) services business of Harman Connected Services, a subsidiary of Samsung Electronics. This all-cash transaction, valued at a substantial $375 million, is poised to dramatically strengthen Wipro's position in the rapidly evolving landscape of digital engineering services.

The acquisition marks a pivotal moment for Wipro, aligning perfectly with its robust strategy centered around accelerating digital, engineering, and cloud transformation for its clients.

Harman Connected Services' ER&D arm brings a wealth of specialized expertise and a robust client portfolio across critical industries such as automotive, communications, and electronics. This infusion of talent and capabilities will allow Wipro to deepen its presence and offer more comprehensive solutions in high-demand technology sectors.

With a formidable team of over 2,000 highly skilled engineers and 11 cutting-edge development centers, Harman Connected Services' ER&D business generated approximately $200 million in revenue, underscoring its significant market footprint.

These engineers possess invaluable experience in advanced domains, including 5G, the Internet of Things (IoT), autonomous driving technologies, cybersecurity, and sophisticated cloud-based solutions. Their integration into Wipro is expected to create powerful synergies, enhancing Wipro's ability to deliver end-to-end digital product development and engineering lifecycle services to a broader global clientele.

Wipro's strategic rationale behind this acquisition is clear: to capture a larger share of the burgeoning ER&D market, which is seeing unprecedented demand driven by pervasive digital transformation initiatives across virtually all industries.

By integrating Harman's specialized talent and intellectual property, Wipro aims to accelerate innovation, reduce time-to-market for new solutions, and provide enhanced value to its customers seeking to navigate complex technological shifts and build future-ready products and services.

The deal is also expected to significantly boost Wipro's geographical reach and client base, offering access to new strategic accounts and strengthening relationships with existing ones.

The seamless transition of over 2,000 employees into Wipro's global workforce is a testament to the complementary nature of both organizations and their shared commitment to technological excellence and client success.

This transformative acquisition underscores Wipro's commitment to investing in high-growth areas and cementing its status as a leader in digital engineering.

Pending regulatory approvals and customary closing conditions, the transaction is anticipated to conclude in the first quarter of 2025. As industries continue to embrace advanced technologies, Wipro's enhanced ER&D capabilities will be instrumental in helping enterprises worldwide design, develop, and deliver the next generation of intelligent products and services, driving innovation and competitive advantage.