Promax is an Australian services provider founded in 1989 that started off as The Professional Assignments Group, until current CEO Don Nicol bought a significant stake and renamed the company.
The firm’s portfolio focuses mainly on managing trade promotion campaigns – pitching a product to the wholesalers that distribute to end consumers – by applying analytics to the process. Promax helps clients identify trends in their respective industry on an ongoing basis, providing feedback and making other development-related contributions throughout the product’s lifecycle.
Wipro agreed to pay 35 million Australian dollars, or roughly $36 million, for Promax, citing that about 25 percent of manufacturers’ revenue goes into trade promotion. And that’s not the only angle from which this buy makes a lot of sense.
A Wikibon market report from last month found that 44 percent of big data revenue is accounted by services that tie in with this category. The same paper predicts that the size of the market is going to increase over 10 times within the next five years.
“Analytics is a key growth driver of Wipro’s growth strategy. The acquisition of Promax Applications Group will strengthen Wipro’s positioning and capability in management, analytics & optimization of trade promotions, and further extends our leadership in analytics and information management services,” said K.R Sanjiv, the head of Wipro’s global analytics efforts.
Wipro was looking to get into big data services, and Promax proved to be a fairly ideal acquisition target. The two companies have been collaborating for the past few months now, and the latter recently received the ‘Readers’ Choice Best in Class for Trade Promotion Management’ CGT award.