Indian IT outsourcing and consulting giant Wipro has acquired Rational Interaction, a Seattle-based full-service digital customer experience (CX) company. The deal is valued at $52 million, according to a spokesperson for the company.
This is M&A deal Number 120 that ChannelE2E has covered so far in 2020. See the complete M&A deal list here.
The deal will shore up Wipro Digital’s offering for Chief Marketing Officers at a time when a vast majority of companies – 89 percent, according to research from Gartner – are competing solely on CX and the overall CX market is expected to grow exponentially.
Wipro will leverage Rational’s resources that map and orchestrate the customer journey and combine it with its own technical expertise, the company said.
Wipro Digital Acquires Rational Interaction: Executive Perspectives
Nitin Parab, senior VP and global head, Technology Business Unit, Wipro Limited, commented:
"Capturing customer sentiment in real-time and using AI to engage with customers in more meaningful ways will drive higher engagement, purchase and loyalty. Rational Interaction's and Wipro's combined capability provides an end-to-end solution for clients, who know they have to compete on customer experience.”
Kahly Berg, CEO, Rational Interaction, added:
"As companies continue their digital transformation journeys, we see CMOs increasingly stepping in as the leaders of these initiatives, tasked with representing the voice of the customer and ensuring that the digital transformation pays off the brand promise. Wipro's global presence and partnerships with industry leaders provides an opportunity to scale Rational Interaction's CX offerings, building on our success in developing and launching brand-defining campaigns.”
Rational Interaction: Company Background
Founded in 2009, Rational has more than 300 employees working from its Seattle and Bellevue, Washing offices, as well as its locations in Dublin and Sydney. The company has become one of Washington state’s 100 largest privately-held marketing services firms with clients that include a roster of Fortune 500 clients.
Rational Interaction will continue to serve its clients, and there are no plans to reduce its current staff as it integrates with Wipro Digital, the company said.
Wipro, which is based in Bangalore, India, made headlines in April of 2019 after the company’s systems were hacked. The hack seemed to involve a phishing campaign that breached the firm’s corporate email system.
The company has existed since 1945, initially existing as a manufacturer of vegetable and refined oils. The company shifted its focus to the IT sector in the 70s and 80s and now brings in US$.84 billion in annual revenues, making it India’s third-largest IT consulting firm with MSP capabilities.
