Software services exporter Wipro Ltd has agreed to acquire Alight HR Services India Pvt. Ltd, the local arm of US-based Alight Solutions, for $117 million (Rs 800 crore) in cash.
Wipro said in a stock-exchange filing that it expects to complete the transaction by September after receiving regulatory approvals.
Alight Solutions specialises in technology-enabled health, wealth, HR and finance solutions.
âOur focus will be to modernise Alightâs core technology assets and further automate its operations to enhance the user experience of Alightâs end customers,â said Wipro chief executive Abidali Z. Neemuchwala.
According to the statement, the strategic partnership will enable Alight to accelerate investment in consumer-facing technologies and services across its health, wealth and cloud businesses by leveraging Wipro's strengths in automation, machine learning and data analytics.
Alight HR Services, formerly known as Aon HR Services India Pvt. Ltd, was incorporated on 2016 and is engaged in the business of IT and IT-enabled services (ITES). Its expertise includes human resource outsourcing, information technology, shared services and finance process outsourcing services.
The company has five offices in India spread across four locations with around 9,000 employees. It reported revenue of Rs 531 crore in the financial year 2016-17. Alightâs unaudited results for 2017-18 indicate that it has more than doubled revenue to Rs 1,132 crore.
FCM Consulting facilitated the transaction between the two parties.
Earlier this year, Wipro picked up a minority stake in US-based artificial intelligence startup Avaamo Inc.
The tech giant, through its investment arm Wipro Ventures, has invested in several early to mid-stage startups working on emerging technologies in India, Israel and the US. It typically puts in between $1 million and $10 million in a single round, depending on the stage of the investment.
It looks to invest in areas such as fin-tech, healthcare IT and the broad enterprise software sector with a focus on domains such as AI, big data and analytics, cloud infrastructure, Internet of Things, and security, according to information available on its website.
Wipro has also made acquisitions in the United States such as HPS and Appirio to boost its local presence.
In continental Europe, Wipro has enhanced its local presence through the acquisition of Cellent AG, an IT services company serving Germany, Austria and Switzerland.
It has also previously invested in Pune-based Altizon Systems Pvt. Ltd, which operates a technology platform for developing industrial IoT solutions, US-based cybersecurity company Vectra Networks, robotics startup Vicarious, and risk and fraud prevention firm Emailage Corporation.