Wipro inks pact to acquire 100% stake in Harman International’s DTS business unit for $375 million

Wipro on Thursday, August 21, announced that it signed a deal to acquire 100% stake in the Digital Transformation Solutions (DTS) business unit of Harman International Industries, a Samsung-owned company.

The Indian MNC will purchase DTS for a total cash consideration, including earn-outs, of $375 million, with the acquisition expected to be completed by the end of the year, i.e., December 31, 2025, it said in a regulatory filing.

Furthermore, upon completion of the acquisition, DTS will integrate into Wipro’s Engineering Global Business Line.

As part of the acquisition, Wipro will also enter into a multi-year strategic agreement with Harman and Samsung.

Additionally, over 5,600 DTS employees, including key leadership, across the Americas, Europe, and Asia will transition to Wipro upon closing of the transaction.

The acquisition is subject to various regulatory approvals, including Antitrust approvals required under the competition laws of the United States, and such other approvals.

Deutsche Bank Securities acted as the financial advisor to the Samsung-owned company during the transaction, it stated.

DTS, headquartered in Connecticut, USA, is a global provider of ER&D and IT services, focusing on areas like Embedded Software, Digital Engineering, Design Thinking, Device Engineering, Cloud & Infra services, Data Analytics & AI, and Enterprise Automation. It caters to industrial, consumer, hi-tech (communication & software), and healthcare & life sciences sectors.

The acquisition will help expand Wipro’s ER&D service offerings. It will help enhance its AI-powered digital and device engineering, including design-to-manufacturing across technology, industrial, aerospace, healthcare, and consumer industries, the company stated.

“Combining DTS’ personalized, high-touch service model with Wipro’s global scale, advanced technology ecosystem, and expansive resources will allow clients to gain access to the best of both worlds: the agility and precision of a specialist provider and the reach and capabilities of a global leader,” Wipro added.

DTS’ consolidated top-line stood at $315 million and $308.2 million in the calendar years 2022 and 2023, respectively. In calendar year 2024, its revenue was $314.5 million, comprising 85% from services and 15% from products.

Commenting on the acquisition, Srini Pallia, CEO and Managing Director at Wipro, said: "Their specialised engineering expertise, combined with Wipro’s consulting-led, AI-powered capabilities, will significantly enhance the value we deliver to clients. DTS’s strong presence in high-growth sectors and strategic markets complements our global footprint and strengthens our position as a trusted transformation partner."

Shares of Wipro closed 0.18% lower at ₹250.4 apiece on the National Stock Exchange (NSE) on Thursday. However, the announcement was made after the market closed.