Biggest Acquisitions Made by Indian IT in 2022

A business taking over another business occurs more frequently than one would imagine. These takeovers, known as acquisitions, play a pivotal role in the long-term growth of the company as well as the economy. 

Today, we are going to cover the acquisitions of Indian IT in 2022. Let's get started!

Infosys 

The IT leader made headlines after Rishi Sunak, the son-in-law of Infosys founder Narayan Murthy, was elected UK Prime Minister. Moreover, the company’s revenue increased by around ~2 billion dollars this year. 

• In April, Infosys acquired oddity, Germany-based digital marketing, experience, and commerce agency, for 50 million euros. With its in-house AR/VR and other digital services, we can expect Infosys to be metaverse ready. 

• Infosys has been at the forefront of helping life science companies globally realise business value from cloud-first digital platforms and data. To continue doing so, the IT major acquired BASE life science, a leading technology and consulting firm in the life sciences industry in Europe, for 110 million euros in an all-cash deal in September 2022. 

HCL Technologies

In 2022, Shiv Nadar's HCL Technologies has pipped Wipro to become India's third-largest IT company by revenue and market cap. 

• HCL Group acquired a majority stake in ed-tech platform GUVI, one of the few companies in India to partner with Elon Musk's OpenAI initiative. HCL plans to create skilled tech professionals in India and abroad through this acquisition. However, the company did not disclose the exact amount of the acquisition.

• Through its wholly-owned subsidiary, the company also acquired a Bengaluru-based Quest Informatics Private Limited in an all-cash 1.95 million dollar deal in July 2022. Quest offers cloud-enabled aftermarket ERP, field services management, and digital parts catalogue product suites.

• In January, the company acquired Starschema, a leading provider of data engineering services based in Budapest, Hungary, for 42.5 million dollars. To bolster HCL's capability in digital engineering—driven by data engineering—and increase its presence in Central and Eastern Europe.

• To expand its capabilities in digital banking and wealth management, the tech giant signed a definitive pact with Avaloq Premium Implementation Partner Confinale for 54 million dollars. This partnership will focus on Confinale's Avaloq consulting, implementation and management capabilities.

Wipro

The year 2022 was not the best for Wipro. The company made headlines when its profit plummeted, attrition peaked, and it laid off nearly 300 employees for moonlighting. As a result, Wipro's stock, too, witnessed one of the most notable falls for tech companies in India. 

• In April, Wipro acquired Convergence Acceleration Solutions (CAS), a US-based consulting and programme management company specialising in driving large-scale business. The deal is for a cash consideration of 50 million dollars and contingent consideration of 30 million dollars to be payable over three years. According to the press release, the acquisition will help Wipro drive large-scale business and technology transformation for clients. 

• Wipro Infrastructure Engineering, a subsidiary of Wipro Enterprises, has acquired Pune-based AI startup LineCraft for an undisclosed amount. With this acquisition, Wipro aims to expand its digital capabilities.

• Wipro Ltd agreed to acquire Rizing Intermediate Holdings, Inc., a global SAP consulting firm, for 540 million dollars to bolster its SAP cloud practice and help clients transform their businesses into intelligent enterprises.

Tech Mahindra

For Tech Mahindra, 2022 was the year of innovations. The IT major revealed that they are building a culture of innovation and new service offerings, like metaverse, along with aiding the delivery of differentiated and more futuristic solutions. 

• Tech Mahindra announced a 100% acquisition of Com Tec Co IT Ltd (CTC) for 310 million euros, including earnouts and synergy-linked payouts. The acquisition will enable Tech Mahindra to tap into the potential industry disruption in the insurance sector.

• The IT company approved the proposal to acquire 100% equity shares in Thirdware Solutions. Thirdware's capability to provide end-to-end implementations and global rollouts of ERP solutions will give Tech Mahindra an edge in the manufacturing space. Tech Mahindra will pay a total cash consideration of up to 42 million dollars, including earnouts.