Wipro Ltd. signed a definitive agreement on Thursday to acquire Appirio, a U.S.-based cloud services company for $500 million, in a cash transaction.
The Bangalore-based IT firm is looking to increase its presence in the cloud computing space with the acquisition, it said in a press release. The deal, once completed, will create one of the world's largest cloud transformation practices, Wipro added.
The acquisition is expected to be completed in the quarter-ended December.
Apprio helps its customers create worker and customer experiences using cloud technologies.
Wipro will merge its existing cloud applications programs including Salesforce and Workday under the Appirio brand. The new expanded entity will be headed by Chris Barbin, chief executive officer of Appirio.
The acquisition will also provide Wipro with access to Topcoder, which is Appirio's crowdsourcing marketplace for connecting customers to designers, developers and data scientists.
Appirio and Wipro are coming together to unlock transformational synergies in the applications space and help enterprises create new business modelsAbidali Neemuchwala, Chief Executive Officer, Wipro said in the release
Established in 2006, the U.S.-based Appirio has offices in Jaipur, San Francisco, Dublin, London, and Tokyo and has 1,250 employees worldwide.
It had revenues of $196 million in 2015 and its clients include brands like Stryker, Robert Half, Johnson Controls, Cardinal Health, Coca-Cola, eBay, Facebook, Home Depot, and Sony PlayStation.
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