Wipro, Warburg in talks to buy Harman's India unit
What's the story
Global private equity firm Warburg Pincus and Wipro Technologies are in advanced negotiations to acquire the digital transformation solutions (DTS) business of US-based audio and connected technologies company Harman in India. The deal is likely to value the DTS unit at around $500 million (approximately ₹4,375 crore), according to The Economic Times. Deutsche Bank is advising on the transaction for Harman, a subsidiary of South Korean conglomerate Samsung Electronics.
Business operations
About Harman's DTS business
Harman, which is known for its audio brands JBL, Harman Kardon, and Infinity, designs and engineers connected products and solutions for automakers and consumers globally. The DTS unit provides digital transformation solutions across sectors and contributes significantly to the company's revenue growth. It has a strong presence in healthcare, communications, and industrial applications in India.
Recent acquisitions
Wipro's recent acquisitions
Wipro Technologies has been on an acquisition spree in recent years. The company also bought US-based IT consulting firm Applied Value Technologies to bolster enterprise application development and support services. Wipro purchased a 27% stake in SDVerse, an automotive software marketplace, last year.
Investment portfolio
Warburg Pincus's investments
Warburg Pincus, a New York-headquartered private equity firm, is an active investor in digital solutions and outsourcing. The company previously owned Encora, a digital engineering services provider for outsourced software product development. It sold Encora to Advent International in 2021. In India, Warburg Pincus backs Perfios, a business-to-business software-as-a-service provider for the banking, financial services and insurance sector operating across 18 countries.