Wipro on Monday said it will acquire Austin, Texas-headquartered Edgile for $230 million, a move that will strengthen the IT major's play in the cybersecurity services space.
Edgile's experienced cybersecurity and risk management professionals will allow Wipro to further enhance its cybersecurity and risk consulting capabilities for the benefit of its customers, a regulatory filing said.
In addition, the company's 'strategy-first' approach and 'Quick Start' solutions will allow the combined entity to deliver enhanced value in strategic cybersecurity services, it added.
The purchase consideration is $230 million, and the transaction is expected to be completed before March 31, 2022, subject to regulatory approvals and customary closing conditions, the filing said.
The transaction will require approval by the Committee on Foreign Investment and Hart-Scott-Rodino Antitrust in the US, it added.
Founded in 2001, Edgile is an information security consulting firm providing professional services, primarily focused on delivering cybersecurity and risk management consulting services to corporations. It is privately held and has an onsite workforce of 182 employees. Its revenue for the year ended December 31, 2020, stood at $44.1 million.
Abry Partners, a minority private equity investor in Edgile, will fully exit its investment as a result of this transaction. ''Adding Edgile's strategic consulting capabilities and launching Wipro CyberTransform are significant milestones on our journey to becoming the trusted partner to security leaders and boardroom stakeholders. I see the team blending very well with Wipro's CyberSecurists to deliver transformational cybersecurity on a global scale,'' Wipro Senior Vice President and Global Head – Cybersecurity & Risk Services Tony Buffomante said.
Together, Wipro and Edgile will develop Wipro CyberTransform, an integrated suite that will help enterprises enhance boardroom governance of cybersecurity risk, invest in robust cyber strategies, and reap the value of practical security in action, the filing said. In collaboration with an extensive roster of alliance partners from Wipro and Edgile, Wipro CyberTransform will enable organisations to accelerate their digital transformation and operate in virtual, digital supply chains — all in a highly secure manner, it added.
''Our collective full spectrum of cybersecurity risk consulting and security management capabilities will help our global customers to continue to securely embrace their digital transformation journey and sustain their on-going risk management priorities,'' Edgile Chief Executive Officer Don Elledge said.
Piper Sandler acted as financial advisor to Edgile and Stone Key Partners LLC acted as financial advisor to Wipro for the transaction.
Earlier this year, Wipro strengthened its cybersecurity business by acquiring Ampion, a provider of cybersecurity services in Australia, and the cybersecurity practice at Capco, a consultancy in the BFSI sector in Europe and the US. Additionally, through its Wipro Ventures arm, the company continues to invest in cybersecurity startups.
(With inputs from PTI)
