IT, consulting and business process services firm Wipro Limited has signed an agreement to acquire global cloud services company Appirio for a purchase consideration of US$500m.

Wipro Limited believes its acquisition of the Indianapolis-based multinational will create one of the world's largest cloud transformation practices and is "a game changer in today's as-a-service and digital economy."

Gavin Holme, Business Head, Africa, Wipro Limited, says the acquisition allows Wipro Africa to add significant value to the African customer base, specifically in terms of those customers embarking on digital transformation journeys.

"Appirio and Wipro will unlock synergies in the applications space and help enterprises create new business models. As our customer's adoption of cloud technologies gathers pace, both in the hosted and public cloud environments, they are looking for a services partner who has the experience to manage the cloud transition and support ongoing activities," said Holme.

A key feature of the deal is the availability of the Topcoder crowdsourcing marketplace, which, according to Wipro connects over a million designers, developers and data scientists globally with customers.

"Wipro now has the ability to provide employment opportunities to South African coders / developers through TopCoder ... what a great opportunity for Africa's talent to gain international exposure and recognition," says Holme.

Wipro will consolidate its existing cloud applications practices of Salesforce and Workday under the Appirio brand and structure. Chris Barbin, CEO of Appirio, will lead the expanded business, the companies have stated.

Barbin said, "When you combine Wipro's global scale and deep digital focus with Appirio's transformative worker and customer experience expertise, and best in class team, brand, and partners, you create a formidable force in the industry. Together, our aim is to dominate the market and claim the top spots in industry Net Promoter Score, market share, and best places to work."

According to the companies the acquisition is subject to customary closing conditions and regulatory approvals and is expected to be closed in the quarter ending December 31, 2016.