Bengaluru: India’s fourth-largest IT firm Wipro has announced its intention to acquire the Digital Transformation Solutions (DTS) business unit of HARMAN, a Samsung subsidiary, for $375 million. This acquisition is aimed at enhancing the company’s Engineering Research and Development (ER&D) services, where HARMAN’s expertise in Embedded software and digital engineering will help Wipro enhance its offerings and expand its presence to newer geographies, especially South Korea and Japan.
HARMAN already has R&D centres in India through Harman Connected Services, and this deal with Wipro will allow HARMAN to focus on the core automobile and audio electronics.
Headquartered in Connecticut, USA, this deal will involve the transfer of over 5,600 DTS employees to Wipro across the company’s offices in America, Europe and Asia.
“Welcoming DTS into the Wipro family marks a pivotal step in our transformation journey,” Srini Pallia, CEO and Managing Director of Wipro Limited, said in a press release.
“Their specialized engineering expertise, combined with Wipro’s consulting-led, AI-powered capabilities, will significantly enhance the value we deliver to clients. DTS’ strong presence in high-growth sectors and strategic markets complements our global footprint and strengthens our position as a trusted transformation partner. Together, we’ll accelerate digital innovation, reduce time-to-market, and sharpen competitive advantage.”
Global brokerage firm Nomura expects this acquisition to give Wipro a larger footprint for their existing accounts, including Harman and its parent company, Samsung.
“The acquired entity could add 280 basis points (bps) to Wipro’s revenues in FY27, in our estimate,” an analysis report by Nomura said.
HARMAN’s DTS unit has seen its revenues remain relatively modest over the years, rising marginally from $308.2 million in CY23 to $315 million in CY24. Almost 85% of the revenues come from services, while the remainder comes from sales.
“Flat revenues over the past three years are a concern. It possibly reflects the stress in DTS’ end-clients’, especially in Telecom/ISVs/Semicon sub-segment. That possibly explains the relatively lower valuation paid by Wipro,” Brokerage firm JM Financial Securities said in a report.
The acquisition is likely to be completed by December 2025, subject to regulatory approvals.
Wipro’s shares were trading at Rs.248.10 at 11 AM on August 22.
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