Wipro's $375M Harman Acquisition Fuels Push into Next-Gen Digital and Engineering
Over 5,600 DTS employees, including senior leaders across America, Europe, and Asia, to join Wipro.
Bengaluru: In a significant move to strengthen its global digital engineering capabilities, Indian IT powerhouse Wipro has announced an agreement to acquire the Digital Transformation Solutions (DTS) business unit of Harman International, a Samsung subsidiary, for a cash consideration of up to $375 million. This strategic acquisition is a calculated step to future-proof Wipro’s offerings in AI-led engineering and digital transformation services across a wide range of industries.
This transaction is more than just a merger; it is a transformation aimed at creating a powerful global force in engineering services. The deal directly bolsters Wipro's Engineering Research & Development (ER&D) vertical, one of the fastest-growing segments in the IT services sector.
Strategic Rationale and Key Gains for Wipro
Headquartered in Connecticut, USA, DTS is a global provider of engineering R&D and IT services, specializing in embedded software, digital engineering, design thinking, device engineering, cloud and infrastructure, data analytics and AI, and enterprise automation. Its solutions serve a wide range of clients across industrial, consumer, hi-tech, and healthcare and life sciences sectors.
According to Wipro CEO Srini Pallia, integrating DTS's global talent and deep technical capabilities will blend Wipro’s consulting expertise with Harman’s agile product innovation. This acquisition will significantly enhance Wipro's ER&D portfolio, adding new depth in critical sectors such as Aerospace & Defense, Healthcare & MedTech, Consumer Electronics, Industrial Automation, and Automotive & Connected Devices.
Wipro is set to gain a number of key assets from the acquisition:
- Global Talent: Over 5,600 employees, including key leadership, across 14 countries, will transition to Wipro.
- Tech Hubs: Access to state-of-the-art R&D centers in locations including India, the U.S., South Korea, Germany, Poland, and the U.K.
- Proven Performance: DTS has demonstrated consistent annual revenues of $308–315 million over the past three years, with a strong focus on services (85% of revenue).
- Strategic Client Base: A diverse client portfolio spanning various industries, many of whom are looking to scale their AI and IoT ambitions.
For HARMAN, a company best known for audio brands like JBL and Harman Kardon, the sale allows it to sharpen its focus on its core businesses of consumer audio and automotive electronics.
Christian Sobottka, CEO of Harman International, expressed confidence in the transition and said, “DTS will now be able to expand its impact and deliver more value to clients as part of a technology powerhouse like Wipro.”
The transaction is expected to be finalized by December 31, 2025, pending regulatory and antitrust approvals. Upon completion, DTS will be integrated into Wipro's Engineering Global Business Line, and Wipro will also enter into a multi-year strategic agreement with HARMAN and Samsung.