Wipro acquires US-based ITI to expand its digital portfolio
On June 05, 2019, Wipro announced that it has signed a definitive agreement to acquire International TechneGroup Incorporated (ITI), a global digital engineering and manufacturing solutions company, for $45m.
Commenting on the transaction, Harmeet Chauhan, Senior VP of Industrial & Engineering Services of Wipro, said, “As enterprises innovate and invest in ‘EngineeringNXT’, they are looking for ways to build a Digital Thread across design, engineering, and manufacturing. This acquisition complements Wipro’s core strengths in Industry 4.0 and allows us to offer end-to-end solutions in Digital Engineering and Manufacturing. We are pleased to welcome ITI’s employees and are confident that their unique offerings and solutions will add value to our organization.”
Post acquisition, ITI will operate as a subsidiary of Wipro’s Industrial & Engineering Services division. The deal is expected to be closed by Sep 2019.
About International TechneGroup Incorporated:
Founded in 1983, ITI helps manufacturing companies reduce their time to market by solving engineering problems through computer aided development tools like CAD, CAM, CAE and PLM software implementation.
The company has c.130 employees, and is headquartered out of Milford, OH, with international presence in the UK, Italy, Israel and Germany. Key verticals are aerospace, defence and automotive. The company has also developed products in CAD modelling, compliance, interoperability and data conversion.
In Feb 2018, the company acquired Italy based Mechworks, which provided data management solutions focussed on Dassault’s SOLIDWORKS and Autodesk’s AutoCAD.
Over the last 3 years, ITI’s revenue has grown from $19.6m to $23.2m – CAGR of 8. 8%.
ITI is currently valued at $45m in the deal which represents a sales multiple of 1.9x based on its revenue for FY18.
The acquisition strengthens Wipro's Industry 4.0 practice and is expected to help it offer end-to-end solutions in Digital Engineering and Manufacturing space. Wipro’s current Manufacturing and Technology vertical comprises c.8% of total FY 19A revenue, while it’s I&E practice comprises c.7% of the same.