New Delhi, July 10: Wipro on Thursday, July 9 said it will acquire global strategic design firm Designit for 85 million euros (about Rs 595 crore), a move aimed at strengthening the digital services business of the country's third largest software services company.
"Wipro Digital, the digital business unit of Wipro has announced its intention to acquire Designit. This investment marks a further stage in Wipro's move to evolve the digital offer it takes to market," Wipro said in a statement.
This would be the first acquisition by Wipro Digital, a business unit formed recently to tap into the digital opportunities in the market.
The purchase consideration of 85 million euros includes a performance based contingent consideration payable over three years, it added.
The acquisition is subject to customary closing conditions and regulatory approvals and is expected to be closed in the current quarter.
"The final payout could range between 70 per cent - 105 per cent of purchase consideration," Wipro said.
The acquisition will add complementary capabilities, which is crucial for digital transformation initiatives such as world-class strategic design talent, it added.
It also adds size (over 300 designers) and global reach (network of nine offices), Wipro said.
Founded in 1991, Denmark-based Designit is privately held and delivers transformative product-service experiences for brands in healthcare, telecom, banking, automotive, and retail sectors.
"Our clients are looking to us to help them transform their businesses and move at the speed of digital. Solving these complex challenges starts with strategic design and fuses a human-centered method with innovative technology solutions delivered by multi-disciplinary teams of strategists, designers and engineers," Wipro Digital senior vice president and global head Rajan Kohli said.
The acquisition will complement the capabilities of an established design leader with Wipro's engineering heritage and bring compelling value to clients, he added.
"Design is no longer about beautification. It is about creating a strategic foundation, driving growth and change across industries... There is an endless market for products, services, and systems that need to be simplified and humanized," Designit founder and chief visionary officer Mikal Hallstrup said.