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Wipro to acquire Appirio, owner of Topcoder, for $500 million

October 24, 2016

IT services and outsourcing provider Wipro Limited (NYSE: WIT) announced it will acquire Indianapolis-based IT cloud consulting firm Appirio for $500 million. Appirio also owns Topcoder, a crowdsourcing marketplace with more than one million IT professionals, from coders to data scientists, on its platform. Appirio bought Topcoder in September 2014.

 “In an increasingly digital world, as consumer behaviors and expectations continue to be reshaped by experiences, companies are recognizing that they need to transform how they engage with customers and employees by leveraging the power of cloud,” said Wipro CEO and board member Abidali Neemuchwala. “Appirio and Wipro are coming together to unlock transformational synergies in the applications space and help enterprises create new business models.”

In an interview with The Economic Times, Neemuchwala also said “We believe that the future of work in the IT industry is going to get Uberized to some extent. I could have a Wipro-ite who works nine hours and makes another four to five hours of available time to IT work on Topcoder. So then they can submit that work and get paid for that. This is going to be the future of IT in some cases.”

The acquisition is subject to customary closing conditions and regulatory approvals and is expected to be closed by the end of this quarter.

Wipro will consolidate its existing cloud applications practices of Salesforce and Workday under the Appirio brand and structure. Appirio CEO Chris Barbin will lead the expanded business.

Established in 2006, Appirio is headquartered in Indianapolis with offices in San Francisco, Dublin, London, Jaipur, and Tokyo and has 1,250 employees worldwide.  Appirio’s clients have included Stryker, Robert Half, Johnson Controls, Cardinal Health, Coca-Cola, eBay, Facebook, Home Depot, and Sony PlayStation.

Wipro also reported Friday that revenue rose 10% in its fiscal second quarter ended Sept. 30.