Wipro to acquire Brazil-based IT service provider for $22.4 million

IT major Wipro on Tuesday said it has signed an agreement to acquire Brazil-based IVIA Servios de Informtica Ltda for about $22.4 million (about Rs 169 crore).

IVIA's local talent and long-standing relationships, combined with Wipro's global expertise, will help expand the information technology firm's geographical footprint in Brazil, Wipro said in a statement.

The acquisition will also help Wipro set up delivery centres in the northeast of Brazil leveraging IVIA's workforce, it added.

In a regulatory filing, Wipro said the purchase consideration was $22.4 million, and the transaction is expected to be completed during the quarter ending September 30, 2020, subject to customary closing conditions.

IVIA is privately held and has a workforce of around 722 employees (as of December 2019). It had reported a net revenue of $13.5 million for the year ended December 31, 2019, it added.

The filing noted that the purchase consideration and revenue numbers have been translated from Brazilian real (BRL) to US dollar, where one dollar was equivalent to BRL 5.35.

Wipro has a significant presence in Latin America with offices across five countries in the region -- Brazil, Mexico, Chile, Colombia and Costa Rica.

"In Brazil, Wipro has a vision to grow the operations by bringing the best of its global experience to the local market and becoming a partner of choice as an end-to-end IT services provider. This acquisition is another significant step towards Wipro's commitment to this region," the statement said.

IVIA is headquartered in the northeast of Brazil, with offices in Fortaleza-Cear, Recife-Pernambuco and Natal-Rio Grande do Norte.

Founded in 1996, IVIA provides IT solutions, including system development, maintenance, consulting and project management services, to clients in various sectors such as financial services, transportation, retail, healthcare, consumer goods and manufacturing in Brazil.

"We welcome employees of IVIA to the Wipro family. They bring with them unique strengths and experience that will be of immense benefit to Wipro. We continue to make strategic investments in this region and this acquisition will help Wipro address the needs of clients across multiple verticals," Mukund Seetharaman, vice-president and head (Latin America) at Wipro, said.

Alexandre Menezes, founder and chief marketing officer of IVIA Servios de Informtica Ltda, said Wipro and IVIA can deliver jointly to clients, transform communities and leverage information technology to empower people.

"Wipro's fast-growing presence in the region, digital transformation capabilities, its global customer portfolio and delivery model will help our talent and customers immensely," he added.