German IT company Cellent AG was founded in 2002 and has presence in 11 locations with over 800 employees
India’s third largest IT services exporter Wipro on Wednesday announced the acquisition of Cellent AG, a Stuttgart headquartered IT firm, for 73.5 million Euros (R515 crore approximately). This buyout is expected to help Wipro to expand not only in Germany but also Austria and Switzerland.
IT consulting and software services company Cellent AG was founded in 2002 with presence in 11 locations and has over 800 employees. It recorded revenue of 87 million Euros (R607 crore approximately) for 2014.
According to Wipro, the DACH market, where German is the official language, is a strategic growth and investment region for them. This acquisition will provide Wipro with significant scale and prime customer relationships, especially in the manufacturing and automotive domains, which are key industry sectors in the DACH region.
“Cellent is a well-established player with marquee customers, a well-known brand and has strong local talent. Cellent will significantly boost our footprint in the DACH region, especially in the manufacturing and automotive domains,” said N S Bala, chief executive – manufacturing and Hi-Tech, Wipro.
Peter Rohrbach, CEO, Cellent AG said, “By joining the Wipro family, we will be able to leverage Wipro’s vast services portfolio and its international network to meet our customers’ requirements end-to-end.”
According to Wipro, there are considerable synergies to be derived from this acquisition. Cellent is a well established German brand and this will help in acquiring new customers in the region.
This will also help expand the portfolio of services of cellent and gives scope to more number of global locations where the services can be delivered.
The Europe continent is an important market for Wipro and it accounted for 25.2% of its revenues at the end of second quarter of FY16.
The acquisition is subject to customary closing conditions and regulatory approvals and is expected to be closed in the quarter ended March 31, 2016.
Wipro is following an acquisition strategy of picking up smaller companies which will help them in either getting access to newer markets or niche technologies. It is also picking up minority stakes in startup firms which will provide them access to advanced technologies.
Wipro in July had announced the acquisition of Denmark headquartered digital design firm Designit for 85 million euros in an all cash deal.