Indian IT Services Giant Wipro Makes New Acquisition Amid Quarterly Growth

San Jose, California-based Eximius Design has been steadily making a name for itself as a leading engineering services company with strong expertise in semiconductor, software, and systems design. Known for their inception to productization model, they are responsible for hundreds of innovative designs spanning across the technology industry. Since Silicon Valley is famous for being the hunting grounds of large companies, it was only a matter of time before Eximius found itself dealing with potential suitors.

Founded in 2013, Eximius already boasts an impressive client list that includes Fortune 100 enterprises and high-profile start-ups. The highly skilled engineers at the company provide end-to-end solutions and services for building smarter, smaller, and faster-connected products for various use cases of IoT, Industry 4.0, edge computing, cloud, 5G, and artificial intelligence (AI). With around 1,100 employees, and design centers in the U.S., India, and Malaysia, the company's 2019 revenues were reported to be an impressive $35 million.

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Wipro recently announced its acquisition of Eximius Design, adding to the global IT firm's already comprehensive portfolio of services. Wipro said the purchase consideration is for $80 million in an all-cash deal. The acquisition essentially weds hardware design services with IT consulting.

"Eximius enables Wipro to strengthen market leadership in VLSI and systems design services by expanding our market presence and strengthening our technical leadership in the semiconductor ecosystem, to help accelerate silicon innovation for our customers," said Harmeet Chauhan, Wipro Senior Vice President, Industrial and Engineering Services.

This is at least Wipro’s third acquisition of the year, as the global tech firm stays focused on growth in today's uncertain economic climate.

Notably, at the end of September, Wipro's quarterly report showed growth despite the economic challenges this year. They had growth in revenue, expansion of margins, and robust cash generation. In a bid to pump up stock prices and boost shareholder value, Wipro even announced a share buyback plan that would cost the company up to Rs 9,500 crore. In dollar terms, Wipro said, its revenues from IT services increased 3.7% quarter-over-quarter.

Eximius’ offerings and solutions will be consolidated as a part of Wipro’s EngineeringNXT framework. The acquisition is subject to customary closing conditions and regulatory approvals. But with Eximius as its latest conquest, Wipro will be able to expand into newer market segments and ramp up the customer's journey in next-generation technologies.