Wipro to acquire Designit for Rs 595 crore

Wipro will acquire global strategic design firm Designit for 85 million euros (about Rs 595 crore) as part of the strategy to strengthen its digital services business. The acquisition will be made by Wipro Digital, the digital business unit of Wipro, according to a company statement issued on Thursday.

"This investment marks a further stage in Wipro's move to evolve the digital offer it takes to market. This would be the first acquisition by Wipro Digital, a business unit formed recently to tap into the digital oppotunities in the market. The purchase consideration of 85 million euros includes a performance based contingent consideration payable over three years,"  it said. The acquisition is subject to customary closing conditions and regulatory approvals and expected to be closed in the current quarter. The final payout could range between 70 per cent and 105 per cent of purchase consideration, Wipro said.

The acquisition will add complementary capabilities, which is crucial for digital transformation initiatives such as world-class strategic design talent, the company added. It also adds size (over 300 designers) and global reach (network of nine offices). Founded in 1991, Denmark-based Designit is privately held and delivers transformative product-service experiences for brands in health care, telecom, banking, automotive, and retail sectors.

The acquisition will complement the capabilities of an established design leader with Wipro's engineering heritage and bring compelling value to clients, Kohli added. "Design is no longer about beautification; it is about creating a strategic foundation, driving growth and change across industries ... There is an endless market for products, services, and systems that need to be simplified and humanised," Designit founder and chief visionary officer Mikal Hallstrup said.