Page 31 - IACC Newsletter June 2013 Issue 11

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alternatives made possible by our recent revenue growth, our board concluded that this transaction was the best path
to maximizing value for our shareholders and for our customers."
Wipro invests $5 million in cloud and M2M services provider Axeda Corporation
The country's third-largest software exporter Wipro has invested $5 million (28.3 crore) in Axeda, a US-based software
solutions provider, for an undisclosed minority stake. This is the second such minority investment Wipro is making
within the span of a month. In May, it announced a $30-million minority investment in US-based big data analytics firm
Opera Solutions.
The investment in Axeda comes a little after Wipro signed an agreement with US telecom major AT&T to offer machine-
to-machine solutions using the Axeda platform. With a client roster that includes Philips, Siemens and Diebold, the US-
based company is among the top three service providers specializing in M-to-M software, which facilitates
communication between connected devices such as a refrigerator and smartphone.
"The chief strategy office has consciously decided to make such (minority) investments and it will continue to do so. The
CTO's (chief technology officer) office works closely with the chief strategy office to provide technological assessment
and direction," said Anurag Srivastava, chief technology officer at Wipro. Rishad Premji, son of billionaire promoter Azim
Premji, who is the chief strategy officer, is leading such initiatives.
Citing technology market researchers IDC and Ovum, Wipro said that the estimated market opportunity for for M-to-M
solutions was around $40-60 billion in 2012. Srivastava added that smart systems, automation, analytics, and other
industry-specific technologies that will help Wipro differentiate, are among areas of investment interest.
As part of the latest announcement, Wipro also gets a platinum partner status with Axeda and will get preferential
benefits such as access to its trained technical resources and premium support. Axeda president Todd DeSisto said the
result of the investment would be faster and more streamlined solutions. While Axeda brings the technology, Wipro
brings systems integration expertise and knowledge of industry verticals to the partnership. The two have been working
together for 12-14 months.
"Companies make these minority deals in new technologies to test the waters," said a Mumbai-based investment
banker. He said there could a string of such deals in the future. The country's largest software exporter, Tata
Consultancy Services, second-ranked Infosys, and Mahindra Satyam are among the software firms looking to such
strategies to get faster access to emerging technologies and fuel growth.
Hero MotoCorp buys 49.2% stake in Wisconsin based tech partner EBR for $25
Two-wheeler market leader Hero MotoCorp announced its first overseas equity investment on Monday with the
purchase of a 49.2% stake in its US-based technology partner Erik Buell Racing (EBR) for $25 million (about R149 crore).
The investment, which has been made through a newly-incorporated US arm, paves the way for Hero to enter the North
American and European markets where EBR already has a distribution network.
The investment will help EBR expand production by adding new facilities and also develop a variety of new products for
Hero both in the premium end of the market and in the entry-level smaller displacement bikes. EBR, a niche bike maker
which does bike design as well as engine development, aims to sell 20,000 units annually by 2017, from 65 units last
“This is our first step towards globalization of our brand in financial terms. So far our relation with EBR was more for
buying technology, now with the equity, we will get strategically involved. EBR will use the funds to expand and add new