Indian IT powerhouse Wipro Limited has struck a deal to acquire the Digital Transformation Solutions (DTS) business unit of Harman Connected Services, a subsidiary of Samsung, for $375 million—approximately ₹3,270 crore. This strategic move is designed to strengthen Wipro’s footprint in AI-driven engineering research and development.
Key Details of the Deal
- The DTS unit specializes in embedded software, digital engineering, and device engineering, along with IT services spanning cloud, AI analytics, automation, and customer experience.
- With this acquisition, over 5,600 DTS employees—including key leadership from across the Americas, Europe, and Asia—will join Wipro’s workforce.
- The deal is expected to close by the end of 2025, pending regulatory approvals.
- Wipro will also enter into a multi-year strategic partnership with both Harman and Samsung to further collaboration.
Strategic Advantages for Wipro
- Strengthening ER&D Capabilities: The acquisition enhances Wipro’s engineering research and development (ER&D) services, especially in AI-native engineering, connected products, design thinking, and platform development.
- Scale and Agility Combined: The deal merges DTS’s specialized, high-touch engineering model with Wipro’s global scale and technological ecosystem—offering clients the best of both worlds
- Market Expansion: DTS brings strengths in high-growth sectors like aerospace, healthcare, industrial, consumer electronics, and hi-tech—complementing Wipro’s existing domains.
- Financial Impact: DTS posted approx. $314 million in revenue in 2024, with 85% from services and the rest from products.
Market and Investor Reaction
- Following the announcement, Wipro shares dipped around 0.7–1%, although analysts like JM Financial see significant upside—estimating a 28% potential gain based on expanded service capabilities.
- The acquisition positions Wipro as a top ER&D services provider globally, enhancing its competitiveness against peers like Infosys and Cognizant.
What It Means for Harman and Samsung
- For Harman, this divestment allows the company to sharpen its focus on core competencies—automotive electronics and audio technologies.
- Leadership from both sides view this as a growth enabler: DTS can scale faster under Wipro’s global reach, while Wipro augments its engineering and AI portfolio.Wipro
