Wipro Ltd, India’s third-largest software services exporter, is set to buy a minority stake in US-based application security firm Denim Group Ltd.
Wipro has entered into an agreement to acquire a 33.33% stake in Denim Group for $8.83 million (Rs 57.6 crore ) in an all-cash deal. As part of the transaction, Wipro will pick 510 Series A preferred units of Denim Group and 500 membership units of Denim Group Management, LLC.
The partnership will bring together Wipro’s digital transformation and cybersecurity capabilities with Denim Group’s application security consulting, assessments and implementation services, Wipro said in a stock-exchange disclosure.
John Dickson, principal of Denim Group, said the firm will use the investment to enhance its ThreadFix platform and drive growth.
Denim Group’s flagship product ThreadFix helps security practitioners understand the security posture of their applications and conduct remediation.
“Wipro’s investment in Denim Group will strengthen its portfolio of digital transformation services and help it tap into services for embedding security in software development methodologies such as Agile and DevOps,” said Sheetal Mehta, global head of Cybersecurity and Risk Services at Wipro. The investment is expected to be closed by the end of March.
Established in 2001, Denim Group is an application security firm which helps organisations assess and mitigate application security risks. It has offices in San Antonio and Austin with around 60 employees. The company’s revenues stood at $11.3 million in 2017.
Recent deals by Wipro
In January 2018, Wipro agreed to invest $9.9 million (Rs 63 crore) in US-based marketing services company Harte Hanks for a minority stake.
In 2017, it acquired Brazilian IT firm InfoSERVER SA for $8.7 million to expand its presence in Latin America.