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October 20, 2016
martinwolf Transaction Analysis
Wipro To Acquire Appirio
 
Financial Information*
  • Enterprise Value                                    $500 Million
  • EV/2015 Revenue                                  2.5x
Transaction Facts
  • Indian Tier One business process services giant Wipro (NYSE: WIT) announced today that it was acquiring Salesforce and Workday-focused cloud integrator Appirio.
  • Appirio's 1,250 global employees will be joining Wipro, and Appirio CEO Chris Barbin will continue to lead Appirio (which will be expanded to accommodate Wipro's existing Salesforce and Workday cloud practices).
  • The transaction, Wipro's second largest after acquiring Infocrossing for $600 million in 2007, is expected to close by the end of the year.
Seeking Value in Cloud and Scale
  • Bringing Key Partnerships and Practices: Founded in 2006, Appirio works with major brands such as Johnson Controls, Coca-Cola, Facebook and Home Depot. The company has grown significantly since its founding in Salesforce's San Francisco headquarters and today has integration offerings serving applications from Google, Workday, and others as well.
  • With Scarce Industry Growth, SaaS Remains Bright: The Software-as-a-Service space has always been more volatile than more mature services offerings, but it has also been a source of tremendous growth (especially as major enterprise customers transition to cloud software). This has created a significant opportunity for cloud-focused players such as Appirio - and a potential differentiating acquisition for legacy integration firms like Wipro.
  • Latest Big Play in Hot Space: This is only the latest transaction featuring a legacy integration firm and a cloud applications partner. April featured IBM's acquisition of Bluewolf for $200 million, and Sept. 2015 saw Accenture acquire Cloud Sherpas for an undisclosed amount (reportedly $350 million).
For more information about this transaction,  click here to read the press release.

*Detailed financial information  was not disclosed, however the press release listed the purchase consideration at $500 million and the Indianapolis Business Journal listed 2015 revenue for Appirio as $200 million.

martinwolf was not the advisor in this transaction.

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About martinwolf    


With offices in New York and the San Francisco Bay Area, martinwolf is a leading M&A Advisory focused on middle market companies in the IT Services, IT Supply Chain, IT-Enabled Business Process Outsourcing and Software as a Service (SaaS) space. Since 1997, our team has completed more than 140 transactions in nineteen countries and sold seven divisions of Fortune 500 companies. 

 

martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com.  

 

To learn more about martinwolf, contact Matthew Putzulu at mputzulu@martinwolf.com.

 

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