Wipro to acquire Eximius Design for $80 mn

New Delhi: IT services major Wipro on Tuesday said it will acquire engineering services company Eximius Design for $80 million (about Rs 586.3 crore). In a regulatory filing, Wipro said the purchase consideration is USD 80 million.

“Eximius enables Wipro to strengthen market leadership in VLSI and systems design services by expanding our market presence and strengthening our technical leadership in the semiconductor ecosystem,” Wipro Senior Vice President, Industrial and Engineering Services Harmeet Chauhan said.

This acquisition will help Wipro to expand into newer market segments and elevate customers’ journey in connected products, embedded AI and security, the filing said.

Eximius Design has around 1,100 employees and had registered consolidated revenues of $35.2 million in 2019. It provides solutions and services for connected products for use in IoT, Industry 4.0, Edge Computing, Cloud, 5G and Artificial Intelligence.

Founded in August 2013, Eximius is headquartered in San Jose, US and has design centres in the US, India and Malaysia. Their clientele include companies across semiconductors, cloud and hyper-scale infrastructure, consumer electronics and automotive segments.

“Our customers, employees and the semiconductor ecosystem will benefit from the synergies of Eximius and Wipro’s combined portfolio of offerings,” Jay Avula, CEO, Eximius Design said.

Wipro Q2 net profit dips 3.4%

IT services major Wipro on Tuesday posted 3.4 per cent decline in consolidated net profit to Rs 2,465.7 crore for the quarter ended September 30, and said its Board has approved up to Rs 9,500 crore buyback plan.

The Bengaluru-based company, which had registered a net profit (attributable to equity holders of the company) at Rs 2,552.7 crore in the year-ago period, has priced the buyback programme at Rs 400 per share. Wipro’s revenue for the September quarter was nearly flat at Rs 15,114.5 crore.

In a regulatory filing, Wipro said its Board has approved a buyback proposal, subject to shareholders approval through postal ballot, for purchase of up to 23.75 crore equity shares at Rs 400 per share that aggregates up to Rs 9,500 crore.

This is 4.16 per cent of the paid-up equity share capital of the company as on September 30, 2020, it added. At Rs 400 apiece, the buyback is 6.4 per cent higher than Tuesday’s closing price of Rs 375.5 on BSE.

Wipro expects its revenue from IT Services business to be in the range of $2,022-2,062 million for the December quarter, translating to a sequential growth of 1.5-3.5 per cent. Its IT services segment revenue in the September quarter was at $1,992.4 million – an increase of 3.7 per cent quarter-on-quarter.

“We had an excellent quarter with growth in revenues, expansion of margins and robust cash generation. I am very excited about the opportunities that are ahead of us and encouraged by the acceleration in business momentum we have seen this quarter,” Wipro CEO and Managing Director Thierry Delaporte said. He added that the company’s strategy is to focus on growth in prioritised sectors and markets led by vertical solution offerings.