Wipro, an Indian multinational Technology company, has released an official statement that it is going to acquire Australia-based Ampion for $117 million. The deal will, however, be subjected to certain stipulations prevailing in the international market and regulatory filings.
Sources say that the purchase deal will close by June 30th,2021 provided all regulatory approvals are obtained.
Ampion is a technology-based company that was formed after the merger of two leading Australian IT firms, Shelde and Revolution IT.
And Technology Giant Wipro is said to use the service provider to expand its approach in Cyber security consulting, quality engineering and DevOps.
After Joe Biden took oath as the 47th US President several multinational companies have used the prospective changes in taxation rules as a catalyst to boost M&A deals this year. As there were no changes in the tax rates got through capital gains because of an economic slowdown since last year (because of the COVID-19 Pandemic), it’s said to spur most of the companies to end their deals by this year end.
Wipro will also try to use this era as a golden period and might close the deal of buying Ampion in the next couple of months to speed up its business growth in the Asia-Pacific Region.
Trade analysts say that the company might somehow use its stock power to close the acquisition of Ampion as it cuts down the risk of overpaying and as the value clutches on the relative valuation of the two companies, rather than sporadically depending on the varied rates influenced by investments, bankers and market valuation of the target.