Wipro to acquire Promax Applications Group

BANGALORE, INDIA: Wipro Limited announced on Monday that it had signed an agreement to acquire Promax Applications Group (PAG), a leading player in trade promotion planning, management and optimization solutions space for a total purchase consideration of AUD 35 million, in an all-cash deal.

As per industry estimates, consumer-focused companies spent 12 to 25 per cent of their gross annual sales on trade promotions. Organizations were increasingly leveraging analytics to enhance effectiveness and maximize the return on investment (ROI) of their spend on trade promotions, stated an official release.

On the acquisition, K.R. Sanjiv, senior vice-president and global head, Analytics and Information Management, Wipro, said, "Analytics is a key growth driver of Wipro's growth strategy. The acquisition of Promax Applications Group will strengthen our positioning and capability in management, analytics & optimization of trade promotions, and further extends our leadership in analytics and information management services."

He added that combining PAG's deep industry expertise with Wipro's proven experience in delivering large business solutions to global clients would enable their clients to maximize the ROI of Trade Promotion spends.

PAG, according to Wipro officials, is headquartered in New South Wales, Australia and has over 45 customers across verticals, like F&B, OTC pharma and beer. Wipro's chief strategy officer Rishad Premji said that PAG had revenues worth AUD 15-16 million.

"We will continue to remain active on the M&A (mergers and acquisition) front. We will look at acquisitions that are strategic and (those) fill the gaps, irrespective of whether it is a big or small business," explained Premji.

Don Nicol, CEO of PAG, added, "PAG will help Wipro to differentiate its offerings in the trade and marketing management space through an added value proposition. The combined entity will provide clients access to an enhanced portfolio of technologies and solutions, and provide employees enhanced training, growth and career opportunities."

Avendus Capital acted as the exclusive financial advisor to Wipro on this transaction. The newly formed entity will be called as Wipro Promax Analytics Solutions Pty Ltd. The deal, according to Wipro, is expected to be closed sometime this quarter.