Wipro to Acquire Harman's DTS Business Unit, Expand Global Reach

Wipro has agreed to acquire Harman's Digital Transformation Solutions (DTS) business unit, which includes over 5,600 employees. The acquisition will enhance Wipro's engineering capabilities and expand its global footprint. DTS provides specialized engineering expertise in domains such as digital convergence, cloud services, and IoT. Wipro will incorporate DTS into its Engineering Global Business Line and establish a multi-year strategic partnership with Harman and Samsung. The deal is expected to be finalized by December 31, 2025, subject to regulatory approvals.

Wipro Limited has agreed to acquire Harman's Digital Transformation Solutions (DTS) business unit for $375 million. The acquisition aims to enhance Wipro's engineering capabilities and expand its global footprint. DTS provides specialized engineering expertise in domains such as digital convergence, cloud services, and IoT. Wipro will incorporate DTS into its Engineering Global Business Line and establish a multi-year strategic partnership with Harman and Samsung. The deal is expected to be finalized by December 31, 2025, subject to regulatory approvals [1].

The acquisition brings over 5,600 DTS employees, including key leadership, across the Americas, Europe, and Asia to Wipro. DTS, headquartered in Connecticut, USA, is a global provider of Engineering Research & Development (ER&D) and IT services with a presence in 14 countries, including India, the United States, South Korea, the United Kingdom, Poland, and Germany [2].

Wipro's CEO and Managing Director, Srini Pallia, stated that integrating DTS into the Wipro family marks a pivotal step in their transformation journey. He noted that DTS’s high-touch service model, combined with Wipro’s global scale and advanced technology ecosystem, will provide clients with greater access to digital engineering and innovation capabilities [2].

The acquisition will strengthen Wipro's ER&D service portfolio, particularly in high-growth sectors such as technology, industrial, aerospace, healthcare, and consumer markets. The deal is expected to enhance Wipro’s design-to-manufacturing capabilities and provide end-to-end solutions for clients [3].

Brokerages have offered mixed views on the acquisition. Nomura, with a 'buy' rating, estimates that the acquisition could add 280 basis points to Wipro’s revenues by FY27. Morgan Stanley maintained an 'equal weight' stance, noting potential margin-dilutive effects. HSBC adopted a cautious view with a 'hold' rating [3].

Wipro shares closed flat at Rs 249.95 on Thursday on the BSE, and retail sentiment on platforms like Stocktwits remained bullish [3].

References:
[1] https://m.economictimes.com/markets/stocks/news/wipro-shares-in-focus-after-375-mn-acquisition-of-harmans-digital-transformation-solutions-business/amp_articleshow/123443987.cms
[2] https://economictimes.indiatimes.com/markets/stocks/news/wipro-shares-in-focus-after-375-mn-acquisition-of-harmans-digital-transformation-solutions-business/articleshow/123443987.cms
[3] https://stocktwits.com/news-articles/markets/equity/wipro-to-acquire-harman-dts-business-for-375-million/chsmpMsRd0G