Wipro to acquire Australia's Promax Applications Group for Rs 192 crore
Wipro will buy an Australian analytics company specialising in trade promotion for Rs 192 crore, strengthening its skills in one of the areas regarded as one of the most-promising growth prospects for Indian IT services companies.
The announcement was headlined by chief strategy officer Rishad Premji, the son of Wipro chairman Azim Premji, marking what could herald an increased public profile for the presumed heir apparent to a multi-billion-dollar business empire.
The acquisition of Promax Applications Group for A$35 million by the IT services arm Wipro Technologies in an all-cash deal, is expected to be completed by the end of this quarter.
“Wipro will continue to look at differentiation with investments in this area,” Premji said, referring to data analytics. Premji, 34, has worked his way through the banking and investor relations units before becoming the head of strategy. “Analytics continue to be our prime focus area and we are betting on this space for the long term.”
Cloud services, mobile computing and data analytics are regarded as the hottest emerging growth areas for Indian IT providers as they adapt their business models to the increasingly sophisticated needs of clients.
According to research firm Gartner, the business intelligence, analytics and performance management software market was the second-fastest growing area in worldwide enterprise software market in 2011.
Promax’s solutions help clients adopting predictive analytics to give them better insight into the effectiveness of trade promotions, Wipro Technologies, which ended fiscal 2012 with revenues of nearly $6 billion, said.
To be called Wipro Promax Analytics Solutions, the company averaged an annual revenue of A$15-16 m, with 45 clients and 71 employees. Its margins are in the same range as its IT services business.
In January this year, Promax entered into a strategic partnership with Wipro to provide trade promotion analytics for the Indian company’s consumer goods clients. Wipro also operates a consumer care company.