IT major Wipro has signed a definitive agreement to acquire a 100% shareholding in Applied Value Technologies for $40 million, according to a regulatory filing on BSE.

In an all-cash transaction, Wipro is set to also acquire its affiliates Applied Value Technologies Pte Ltd and Applied Value Technologies B.V. (“AVT”), which are part of the Applied Value Group.

Founded in 2021, Applied Value Technologies is headquartered in Massachusetts, USA, while Applied Value Technologies Pte Ltd is headquartered in Singapore. Applied Value Technologies B.V., founded a year later, is headquartered in the Netherlands. These companies provide enterprise application development and support services for a global clientele.

Wipro said in the filing that “AVT helps enterprises transform IT operations through a highly customized and data-driven approach. AVT will augment Wipro’s existing application services capabilities, helping drive new growth opportunities.”

The transaction is expected to be completed by December 31 at the latest. Its consolidated revenue for the last three completed years, ending December 31, was $0.8 million in 2021, $8.7 million in 2022 and $19.4 million in 2023.

According to the filing, the purchase consideration includes a deferred consideration in the form of an earnout, payable subject to the achievement of certain performance metrics and conditions.