India, Dec. 26 -- Merger and Acquisition (M&A) activity in India's technology sector experienced a notable resurgence in 2024, recovering from a sharp decline in deal-making observed from mid-2022 to 2023. Major Indian IT firms, including Infosys, Wipro, and HCLTech, pursued acquisitions to enter niche sectors like Generative Artificial Intelligence (GenAI), customer experience and engineering R&D, aiming for growth in a cautious global market with limited organic opportunities.
Cognizant's $1.3 billion acquisition of Belcan is the year's largest deal, followed by Infosys' $480 million purchase of in-tech (and its acquisition of InSemi, a semiconductor design firm, for $33.7 million), enhancing its AI and engineering capabilities. HCLTech's $225 million acquisition of CTG from Hewlett Packard Enterprise (HPE) aimed at strengthening its telecom expertise, while Wipro's $66 million investment for a 60% stake in Aggne Global would bolster its position in P&C insurance.
Although deal momentum dipped slightly after the first nine months, Wipro announced in December its acquisition of US-based Applied Value Technologies for $40 million to enhance application services.
Midcap firms also actively engaged in acquisitions this year. L&T Technology Services acquired Silicon Valley-based firm for $110 million, while Happiest Minds Technologies purchased PureSoftware for $94.5 million to enhance its banking, financial services and insurance (BFSI), healthcare, and life sciences space.
Published by HT Digital Content Services with permission from TechCircle.