Moneycontrol Bureau
Shares of Wipro climbed 1.8 percent intraday Friday on its digital subsidiary's intension to acquire Denmark-based strategic design firm.
“Wipro Digital, the digital business unit of Wipro, announced its intention to acquire Designit, an award winning and global strategic design firm specializing in designing transformative product-service experiences," said the company in its filing to the exchange.
This investment marks a further stage in Wipro’s move to evolve the digital offer it takes to market, combining its reputation and heritage in deep engineering and transformative technology with human centered-design methods, it added.
Since it’s founding in 1991 in Aarhus, Denmark, Designit has become one of the world’s largest, privately-held design firms. Employing more than 300 people in nine offices globally, it delivers transformative product-service experiences for some of the world’s most innovative brands in healthcare, telecom, banking, automotive, and retail.
The acquisition is subject to customary closing conditions and regulatory approvals and is expected to be closed in the current quarter.
Sarabjit Kour Nangra, VP Research - IT at Angel Broking said while the exact numbers are not available in terms of cost of acquisition and sales of the acquired company, the acquisition is line in with the company’s strategy to use inorganic initiatives to fund the growth.
She maintained buy rating on the stock with the price target of Rs 753.
Meanwhile, the country's third largest IT company is going to declare its April-June quarter earnings on July 23.
At 12:34 hours IST, the scrip of Wipro was quoting at Rs 548, up Rs 3.35, or 0.62 percent on the BSE.
Posted by Sunil Shankar Matkar
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