Wipro to acquire Appirio; Q2 expectation subdued

IT major Wipro has agreed to buy US-based cloud services company Appirio Inc., for USD 500 million (Rs 3,340 crore) in an all cash deal, as India's third-largest software services exporter continues its buying spree overseas to strengthen its offerings in new technological areas.

The acquisition will create one of the world’s largest cloud transformation practices, Wipro said in a stock-exchange filing. This is the fifth acquisition by Wipro and by far a major one.

“Appirio and Wipro are coming together to unlock transformational synergies in the applications space and help enterprises create new business models,” Neemuchwala said.

Wipro, India's third largest software exporter is expected to witness a subdued growth and pressure on margins when company comes out with its numbers later today.

Performance of Wipro will be closely watched after its rivals posted a tepid set of Q2 earnings.

Ahead of the result announcement shares of Wipro were trading with a quarter per cent gain at Rs 496.50 on NSE. Wipro has been a rank under-performer in terms of returns delivered to investors in the past quarter or so reflecting poor financial results.