Wipro to acquire US cloud-computing company Appirio for $500 million

Wipro Ltd, India's No 3 software exporter, is acquiring US-based cloud services company Appirio for $500 million in a cash transaction, as the Bangalore-based firm looks to increase its presence in the cloud-computing space.

Wipro, a leading information technology, consulting and business process services company, today announced that it has signed a definitive agreement to acquire Appirio, a global cloud services company that creates next generation worker and customer experiences.

The deal, once completed, will create one of the world's largest cloud transformation practices, a game changer in today's as-a-service and digital economy. Appirio also brings to Wipro, Topcoder, a leading crowdsourcing marketplace connecting over a million designers, developers and data scientists around the world with customers, Wipro said in a press release.

Established in 2006, Appirio is headquartered in Indianapolis with offices in San Francisco, Dublin, London, Jaipur, and Tokyo and has 1250 employees worldwide. Appirio is a trusted partner to some of the world's leading brands, including Stryker, Robert Half, Johnson Controls, Cardinal Health, Coca-Cola, eBay, Facebook, Home Depot, and Sony PlayStation.

"In an increasingly digital world, as consumer behaviors and expectations continue to be reshaped by experiences, companies are recognising that they need to transform how they engage with customers and employees by leveraging the power of cloud. Appirio and Wipro are coming together to unlock transformational synergies in the applications space and help enterprises create new business models," said Abidali Z Neemuchwala, CEO and  board member of Wipro Limited.

Wipro said it will consolidate its existing cloud applications practices of Salesforce and Workday under the Appirio brand and structure. Chris Barbin, chief executive of Appirio, will lead the expanded business.

"When you combine Wipro's global scale and deep digital focus with Appirio's transformative worker and customer experience expertise, and best in class team, brand, and partners, you create a formidable force in the industry," said Chris Barbin.

"Together, our aim is to dominate the market and claim the top spots in industry Net Promoter Score, market share, and best places to work," he added.

"Chris and his team have spent the last decade building Appirio into a global leader delivering amazing customer experiences with Salesforce," said Marc Benioff, chairman and CEO of Salesforce. "I couldn't be more proud of Appirio as it joins Wipro, where together they will continue to drive customer success on a much larger scale," he added.

"As one of our earliest partners, Appirio has played a key role in the Workday Community, and we're thrilled to see such a great opportunity for the team's continued growth," said Aneel Bhusri, co-founder and CEO, Workday. "With Appirio, Wipro gains an organization with deep industry expertise and a strong commitment to customer service, dedicated to helping companies take their businesses to the cloud."

The acquisition is subject to customary closing conditions and regulatory approvals and is expected to be closed in the quarter ending 31 December 2016. William Blair & Company acted as financial advisor to Appirio during the transaction.