Wipro Ltd, India’s third-largest software services exporter, has agreed to acquire California-headquartered Eximius Design for $80 million (Rs 585-590 as per current exchange rates) in an all-cash deal.
The acquisition will strengthen Wipro's market presence and technical leadership in the semiconductor ecosystem. It will enable Wirpo to strengthen market leadership in systems designs and very-large-scale integration (VLSI), a process of creating an integrated circuit (IC) by combining thousands of transistors into a single chip.
“Eximius complements Wipro's Engineering NXT core strengths and 35-year pedigree in VLSI and systems design. This acquisition will help Wipro to expand into newer market segments and elevate the customer's journey in next generation technologies such as connected products, embedded Al and security,” the company informed stock exchanges.
Wipro aims to complete the acquisition by the end of 2020. The transaction is subject to US governmental and regulatory approvals.
San Jose, California-based Eximius Design is an engineering services company focused on ASIC design, FPGA design, systems and software engineering. The company was founded in August 2013 and has design centres in the US, India, and Malaysia.
Eximius provides solutions and services for connected products for various use cases of loT (Internet or Things), Industry 4.0, edge computing, cloud, 5G and artificial intelligence (AI). Their expertise spans across SOC, IP, ASIC, FPGA1, Hardware System and Software domains.
Eximius Design claims Fortune 100 enterprises and high profile start-ups among its lists of clients operating in the semiconductors, cloud and hyper-scale infrastructure, consumer electronics and automotive segments. The company employs 1,100 people and clocked consolidated revenue of $35.2 million for the year ended December 2019 and $22.2 million for the year ended December 2018.
This is Wipro’s third acquisition so far this year. In struck two acquisitions in July, first by announcing the acquisition of Brazilian IT services company IVIA Servicos de Informatica Ltda for $22.4 million followed by the $78.7 million-deal to acquire Belgium-based 4C, a company having capabilities in transforming quote-to-cash processes with Salesforce’s configure, price, quote (CPQ) software and billing solutions.
In May, Wipro appointed Thierry Delaporte as its new CEO and managing director from July. Until recently, Delaporte was the chief operating officer of Capgemini Group and a member of its group executive board.
The IT major struck two acquisitions last year – buying assets and staff strength of Vara Infotech as part of its $300 million deal with ICICI Bank. In another deal, it acquired US-based digital engineering services firm International TechneGroup Inc (ITI) for $45 million in June 2019.
In June 2019, Bengaluru-based Wirpo also exited its joint venture Wipro Airport IT Services Ltd (WAIS) by selling its balance 11% stake to Antariksh Softtech for Rs 55 lakh.
Earlier that year, the company also sold two of its cloud-based businesses to US-based Alight Solutions LLC for up to $110 million