Wipro Acquires Minority Stake In Axeda

Wipro announced that it has acquired a minority stake in Axeda Corporation. Axeda is a provider of cloud-based services for managing connected products and implementing M2M (machine to machine) applications.

With this investment, Wipro and Axeda will accelerate services and end-to-end solutions designed to help organisations connect with any asset, leverage real-time machine data to enhance business processes, and develop new innovative enterprise applications, said Wipro in a press release. With this acquisition, Wipro will now be able to benefit from Axeda’s rapid M2M application development to fulfil complex needs of customers in a cost effective manner.

Wipro paid a sum of USD 5 million for the acquisition of the minority stake in Axeda. However, the stake it has bought is undisclosed. This investment has come right after Wipro signed an agreement with AT&T to offer M2M solutions using the Axeda platform.

In May 2013, Wipro announced that it bought a minority stake in US-based big data analytics firm Opera Solutions. It had made an investment of USD 30 million for this partnership.

With minority stake investments, Wipro has been getting quite active at growing inorganically. It is also using these investments to strengthen its offerings. Companies have been increasingly looking at fuelling growth by getting access to emerging technologies.

More of these investments in emerging areas can be expected not only from Wipro, but also from other IT majors in the coming quarters. Wipro has been making efforts to revive growth and performance. However, not much is being seen in the financial performance of Wipro. We thus recommend investors to keep a watch on the scrip for positive triggers on the performance front for an investment in Wipro.