Wipro acquires India operations of US-based Alight Solutions for $117 M
The acquisition by Wipro gives it an additional manpower of over 9,000 with revenue of Rs 1,132 crore
Wipro, India’s third-largest IT services exporter, has acquired the India operations of US-based technology company Alight Solutions for an estimated $117 million.
With the acquisition, the Bengaluru-headquartered software services company will takeover Alight HR Services India, the captive arm of Alight, which was providing IT and BPO services. The company has five offices in India across four locations – Gurugram, Noida, Mumbai, and Chennai, and has over 9,000 employees. The India operations of Alight registered revenues of Rs 1,132 crore in FY18.
Wipro and Alight Solutions have also entered into a technology partnership agreement. Alight Solutions CEO Chris Michalak said,
“Our partnership with Wipro enables us to leverage Wipro’s unmatched innovation and leadership in automation and digital technologies, while increasing our investments to harness market trends and deliver even better solutions for our clients as their needs and those of their people evolve.”
Wipro CEO Abidali Neemuchwala said, “Our focus will be to modernise Alight’s core technology assets, and further automate its operations to enhance the user experience of Alight’s end customers. Wipro’s expertise and best practices in Cloud and smart analytics, and investments in proprietary platforms such as Wipro HOLMES will enable this transformation.”
Meanwhile, for the first quarter of FY19, Wipro reported a net profit of Rs 2,094 crore, which is almost a flat growth compared to the same period a year ago, when it registered Rs 2,082 crore.
The revenue of the IT major for the quarter stood at Rs 13,978 crore, as compared to Rs 13,626 crore recorded a year ago, registering a growth of 2.5 percent.
According to Wipro CEO, the company has seen a pickup in spending in the developed markets, particularly in North America and the BFSI segment. “We have had a good quarter of order bookings, and I am confident we are moving in the right direction,” Neemuchwala said.
Wipro’s core IT services business registered a revenue of $2026.5 million, which was an annual growth of 2.8 percent. This growth in revenue was largely boosted by its financial services vertical, while all other segments like healthcare, energy, and retail recorded a decline.