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Wipro shares may react to $375 million acquisition; Analysts see mixed impact to financialsWipro has entered into an agreement to acquire the Digital Transformation Solutions (DTS) business unit of Harman, a Samsung company, for $375 million. The acquisition expands Wipro's ER&D service offerings and capabilities by enhancing its AI-powered digital engineering and device engineering, including design-to-manufacturing, across the technology, industrial, aerospace, healthcare, and consumer industries.By Meghna Sen   August 22, 2025, 8:27:18 AM IST (Published)2 Min ReadShares of Bengaluru-based IT services provider Wipro Ltd. will be in focus on Friday, August 22, after the firm acquired ER&D-focused company Harman Connected Services Inc.

Brokerage firm Nomura, which has a 'Buy' rating on Wipro with a price target of ₹310, said the acquisition will strengthen Wipro's existing ER&D service offerings and enhance its capabilities in AI-powered digital engineering and device engineering, including design-to-manufacturing.

Wipro will acquire the entity for $375 million, including earn-outs through cash, implying a 1.19x price-to-sales multiple (based on CY24 numbers).

If the acquisition goes through successfully, the acquired entity could add 280 basis points to Wipro's revenues in FY27F.

Management, however, indicated the deal could negatively impact EBIT margins by 50 bps in FY27F (on a full-year basis) due to integration costs, amortisation charges, and initially lower margins of the acquired entity.

Morgan Stanley has an 'Equalweight' rating on Wipro with a price target of ₹285.

The brokerage wrote in its note that the acquisition will be accretive to Wipro's ER&D revenue (up by 10%, by estimates) but could be dilutive to margins and neutral to slightly dilutive to EPS in FY27E.

The acquisition will also expand Wipro's presence in new geographies such as South Korea and add capabilities in embedded software, digital engineering, and IoT. The customer base and priority sectors of DTS complement Wipro's portfolio, while anchor clients such as Samsung further boost the client roster.

DTS reported revenues of $314.5 million in CY24 (flat versus CY22), with revenue per employee of $56,000 across 5,600 employees, implying a majority India-based workforce.

HSBC maintained a 'Hold' rating on Wipro with a price target of ₹260.

According to the management, Wipro's said strong deal wins in recent quarters provide confidence in a growth recovery in H2FY26. Client-specific issues in Europe appear largely resolved, as do recent management changes.

HSBC added that Wipro's valuation gap versus peers is nearing historic lows.

Wipro shares ended 0.18% lower on Thursday at ₹250.40 and have fallen nearly 17% so far in 2025.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!Tagsshare market todayWiproWipro ShareWipro share price