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Wipro’s share price has been down by more than 60% since the start of 2021.

Wipro’s share price has been down by more than 60% since the start of 2021. This comes after the company reported its first quarterly loss in over a decade. However, it is still unclear whether this is due to Brexit or a result of the company’s recent acquisition of US-based cloud services provider Zylog Systems.

What is Wipro?

Wipro Limited is an Indian multinational information technology (IT) service, consulting and business process outsourcing (BPO) company headquartered in Bangalore, India. It was founded in 1945 as Watson & Wyle Laboratories by two Americans, Robert P. Watson and Narayan K. Wyle.

What happened to Wipro?

On July 18th, Wipro announced that it had completed its acquisition of Zylog Systems for $500 million (£382 million). The deal was originally announced back in March 2019 and was initially supposed to be completed by June 2020. However, the deal got delayed because Zylog Systems’ shareholders were not able to agree on a price for their shares.

Wipro had initially offered $430 million (£327 million) for Zylog Systems but later increased its offer to $450 million (£339 million). When this did not work out either, it finally agreed on paying $500 million (£382 million). The acquisition will help Wipro strengthen its position in cloud services and artificial intelligence (AI), which are currently some of the fastest growing areas within IT services.

The deal also includes a three-year earnout component that could see an additional payment made between $50-$100 million (£38-$77 million) depending on how well Zylog Systems performs over this period.

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