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Wipro is acquiring 100% stake of Harman Connected Services Inc (DTS) and its subsidiaries from Harman International for up to $375 million in an all-cash deal.
Harman Connected, based in Connecticut, is a global ER&D and IT services provider with over 5,600 employees across 14 countries, including India, the US, South Korea, and Germany.
The why: as per the IT giant, the deal boosts its AI-powered digital and device engineering capabilities, from design to manufacturing, across industries like aerospace, healthcare, tech, and consumer products.
By pairing Harman’s high-touch delivery model with its own global scale, Wipro expects to give clients the best of both worlds including specialist agility with big-league reach.
Why Harman Connected Services: for Wipro, this deal is like buying a ready-made toolbox filled with high-tech skills it didn’t fully have before. Harman Connected is strong in engineering R&D, basically helping companies design, build, and upgrade everything from devices to software systems.
Zoom out: the acquisition adds fuel to the growing consolidation wave in engineering R&D. Infosys has already picked up two ER&D firms, HCLTech snapped up an auto engineering company last year, while Cognizant added Belcan and Thirdera to its portfolio. Traditionally, ER&D was the domain of specialists like L&T Tech Services, Cyient, and Tata Elxsi, but IT giants are now rushing in as spending accelerates.
Big thing: mid-tier pure-play ER&D firms are outpacing larger IT companies on revenue and growth, even as the broader IT sector battles macro pressures and sluggish demand. The government, too, is paying attention as India’s ER&D Global Capability Centres grew 30% to hit $25 billion in FY23.
