Wipro Ltd. (News - Alert), an outsourcing firm, has revealed that it has agreed a deal to acquire Promax Applications Group for a sum of 35 million Australian dollars or equivalent to $36.6 million USD.
India-based Wipro claimed that, going by industry estimates, consumer-focused companies spend between 12 and 25 percent of their gross annual sales on trade promotions. In other words, they are spending a significant proportion of income marketing their companies to trade vendors, rather than consumers.
Firms are often looking to analytics in order to ensure the maximum return on investment from utilizing such trade promotions.
Promax, a privately held firm which provides trade promotion planning and management services, is based in Australia, and has offices in New Zealand, Japan, Europe and North America.
"Analytics is a key growth driver of Wipro's growth strategy. The acquisition of Promax Applications Group will strengthen Wipro's positioning and capability in management, analytics & optimization of trade promotions, and further extends our leadership in analytics and information management services,” said K.R Sanjiv, senior vice president and global head of analytics and information management at Wipro.
“The combined entity will provide clients access to an enhanced portfolio of technologies and solutions, and provide employees enhanced training, growth and career opportunities," said Don Nicol, CEO of Promax.
Wipro’s agreement to buy Promax is expected to close by the end of the current financial quarter, subject to customary closing conditions and regulatory approval. The new company will be called Wipro Promax Analytics Solutions Pty Ltd.
Last month, Wipro launched its NextGen (News - Alert) Care Management solution for the U.S. healthcare market through its Wipro Technologies subsidiary. Meanwhile, the firm entered into a strategic agreement with Eucalyptus Systems (News - Alert). As part of the deal Wipro is offering Eucalyptus' Infrastructure as a Service (IaaS) solution as part of its enterprise cloud computing offering.
Edited by Brooke Neuman