Wipro acquires Danish design firm for Rs 594cr

BENGALURU: Wipro Digital, the newly created digital business unit of the $7.5-billion Wipro, is acquiring Denmark-based strategic design firm Designit for 85 million euros (Rs 594 crore).

The purchase price includes a performance-based payout payable over three years. The final payout could range between 70% and 105% of the purchase consideration.

“Our clients are looking to us to help them transform their businesses and move at the speed of digital. Design is so strategic, and technology is so closely embedded in a product or a service. Designit’s design capabilities and our engineering heritage will combine to bring a compelling value to our clients,” said Rajan Kohli, senior VP and global head of Wipro Digital.

Founded in 1991 by Mikal Hallstrup, Designit is one of the largest privately held design firms globally and counts Audi, Cisco and Telefonica as clients. The firm has 300 employees and nine offices globally including in Copenhagen, Stockholm, Munich and Oslo.

The company offers a gamut of digital offerings in healthcare, telecom, banking and automotive sectors. It did 27 million euros in revenues in 2014, and has grown 22% in CAGR in the last three years.

Wipro Digital will absorb all 300 employees and induct Hallstrup and some of the senior leaders to what it calls the Wipro Digital Leadership Team. Designit will continue to operate under the same brand name.

Wipro will marry its heritage in engineering with Designit’s digital capabilities to leverage cross-selling and up-selling opportunities across offerings including digital transformation, internet of things and connected living.