Wipro Limited has announced that it has signed an agreement to acquire Promax Applications Group (PAG), a leading player in trade promotion planning, management, and optimization solutions space, for a total purchase consideration of AUD35 million (about Rs190 crore).
As per industry estimates, consumer focused companies spend 12 to 25% of their gross annual sales on trade promotions. Organizations are increasingly leveraging analytics to enhance effectiveness and maximize the return on investment (RoI) of their spend on trade promotions.
Analytics is a key growth driver of Wipros growth strategy. The acquisition of Promax Applications Group will strengthen Wipros positioning and capability in management, analytics & optimization of trade promotions, and further extends our leadership in analytics and information management services. Combining PAGs deep industry expertise with Wipros proven experience in delivering end-to-end large business solutions to global clients, will enable our clients to maximize the ROI of Trade Promotion spends, said KR Sanjiv, Senior Vice President and Global Head, Analytics and Information Management, Wipro.
Don Nicol, CEO of Promax Applications Group, added, "We are excited and proud at the prospect of joining Wipro which is recognized globally for its comprehensive portfolio of services and, strategic focus on advanced analytics capabilities. PAG will help Wipro to differentiate its offerings in the trade and marketing management space through an added value proposition. The combined entity will provide clients access to an enhanced portfolio of technologies and solutions, and provide employees enhanced training, growth and career opportunities."
Avendus Capital acted as the exclusive financial advisor to Wipro on this transaction.
Completion of the acquisition is subject to customary closing conditions and regulatory approvals and will be closed in the current April-June 2012 quarter. The newly formed entity will be called as Wipro Promax Analytics Solutions Pty Ltd.