Wipro to Buy Harman DTS Business for $375m to Boost AI Engineering
The deal adds 5,600 staff and $314 million in revenue, deepening Wipro’s AI-led engineering push while Harman sharpens its focus on core businesses
News
- India Faces Lower Risk of AI Job Disruption Than the West, Says IT Secretary
- Tata Steel Discloses $1.6 Billion Dutch Class Action Over Emissions
- Nvidia Licenses Groq’s Inference Tech, Hires Leadership
- HCLTech Deepens Software Push With Three Acquisitions in a Week
- Isro Launches BlueBird Block 2 in Heaviest Commercial Mission Yet
- OpenAI Softens ChatGPT’s Tone While Scaling for an AI Showdown
[Image source: Chetan Jha/MITSMR India]
Wipro Ltd has entered into a definitive agreement to acquire the digital transformation solutions (DTS) arm of Harman, a Samsung subsidiary, for $375 million, the company said.
The deal, announced on Thursday, 21 August, is expected to close by the end of the year, subject to regulatory approvals.
Wipro said the acquisition will expand its engineering research and development (ER&D) services, an area of growing demand as clients invest in AI-driven digital transformation.
“Welcoming DTS marks a pivotal step in our transformation journey,” said Srini Pallia, Wipro’s chief executive. “Their engineering expertise, combined with Wipro’s AI-powered capabilities, will accelerate digital innovation and sharpen client competitive advantage.”
The acquisition will add more than 5,600 employees from DTS to Wipro’s Engineering Global Business Line, including senior leaders in the US, Europe and Asia.
DTS, which develops embedded software, cloud infrastructure, AI and data analytics solutions, earned $314 million in revenue last year from operations across 14 countries.
DTS reported close to $314 million in revenue in 2024, with around 85% derived from services
“This acquisition strengthens our platform-centric approach, enabling us to deliver larger, more complex transformation programs at scale,” said Srikumar Rao, Managing Partner and Global Head of Engineering at Wipro.
From Harman’s side, Christian Sobottka, CEO of Harman, said: “Joining Wipro will help DTS scale faster and expand its client reach, unlocking new growth potential,” while adding that the divestment would free Harman to sharpen its focus on core audio and automotive electronics.
“This deal allows Harman to focus on core strengths while collaborating on AI-first technologies with Wipro,” added Carolin Reichert, Harman’s Chief Strategy Officer.
The acquisition aims to blend DTS’s high‑touch, specialist engineering model with Wipro’s global scale, technology ecosystem, and AI capabilities—providing clients with agility and precision alongside breadth and capacity, analysts said.
Nomura highlighted potential upside, additions of up to 280 basis points (bps) to revenue by FY27, while cautioning about short‑term margin pressure from integration costs. One basis point is one-hundredth of a percentage point.
Similarly, JM Financial expects a 50–60 bps hit to EBIT margins initially, though EPS impact should be modest, and the acquisition represents around 6% of Wipro’s cash reserves.
