Wipro, India’s fourth largest information technology (IT) services firm, said it will acquire US-based insurtech firm Aggne Global Inc and its Hyderabad-based affiliate Aggne Global IT Services for $66 million.
Wipro will acquire 60% of the company in an all-cash deal, with an option to purchase the remaining stake over a period of time, as per a stock exchange filing.
Revenues of the Aggne Group are $4.5 million for calendar year 2021, $9.1 million for 2022, and $17.9 million 2023.
The transaction is expected to be completed at the latest by February 14, 2024, subject to customary closing adjustments as per terms of the purchase agreement.
“This acquisition of Aggne will strengthen Wipro’s competitive advantage in the insurance sector—particularly in the property & casualty (P&C) insurance space. This combination will enhance Wipro’s P&C core system implementation capabilities specifically in the area of Duck Creek. Aggne’s Swift IPs combined with Wipro’s wider offerings will position us as an end-to-end player in the P&C insurance space,” the IT company said in the release.
Duck Creek is a full suite of cloud-based, low-code products that help property and casualty insurers accelerate product development and drive ongoing innovation.
“We are thrilled to add Aggne’s unique capabilities to our portfolio… Their innovative, IP-driven consulting capabilities in the insurance space and premier partnership status on the Duck Creek platform stand out in the marketplace. Combined with our domain expertise, these capabilities will allow us to bring clients a truly end-to-end offering that will help them drive competitive advantage and customer loyalty,” said Harpreet Arora, senior vice president and global head of banking, financial services and insurance domain and consulting at Wipro.
Over the last two years, Wipro made around four other acquisitions including its biggest acquisition with London-headquartered business and technology management consultancy firm Capco for $1.45 billion. Other buyouts include Rizing, CAS in April 2022 and Edgile in December 2021.
Last month, ET reported that Wipro plans to lay off hundreds of its “very expensive” mid-level executives onsite in Capco.
“Contributions from our acquired firms, such as Capco, Rizing and Designit, you know them, are more prominent and well-received,” said Thierry Delaporte in the post-results conference call in January.
Founded in 2019, Aggne was incorporated in Florida US and its affiliate Aggne Global IT Services Private Limited was founded in 2020 and in Hyderabad in India. It offers IT, consulting, and managed services company for the property & casualty insurance industry. It has offices in Tampa in Florida and Hyderabad and has 230 employees based in India and the US.
“We are excited about the growth opportunities this new partnership creates for our company and our current and future clients… Joining forces with Wipro will allow us to reach a larger and global set of clients and deepen our presence in the insurance sector. Further, Wipro’s commitment to talent development will provide our employees with new growth opportunities. With access to Wipro’s scale and deep technical capabilities, as well as investments in artificial intelligence, we will be able to innovate faster, expand our capabilities and build new ones in alignment with evolving industry needs,” said Asha Kalidindi, cofounder and CEO of Aggne.
Source: Economic Times