Acquisition strengthens Wipro’s Telecom Services portfolio and expands footprint in Nordics Bangalore, India, June 8th, 2006 --
Wipro Technologies, the global IT Services arm of Wipro Limited (NYSE: WIT) announced today that it has signed an agreement to acquire the Finland based Saraware Oy in an all cash deal. The consideration of Euro 25 Million includes upfront cash payment and debt takeover. In addition there are earn-outs on achieving targeted financial conditions over an 18 month period.
Saraware, a 21 year old company, is a leading provider of Design and Engineering services to Telecom companies. This acquisition adds expert domain competencies in the areas of Radio Networks and Secure Mobile platforms. Saraware has nearly 200 specialists in these domains based out of Finland. About Wipro
Close to 50% of global market share in Wireless Infrastructure domain is dominated by major players in the Nordic belt. Ramesh Emani, President, Product Engineering Services of Wipro Technologies said “This acquisition gives us much needed local presence in Finland and puts us in the heart of the Nordic region. We need near-shore development centers, as we take up more complex and end to end engagements with our customers. In addition, this acquisition brings niche skills in development of Base Station Controllers and mobile communication platforms. Combined with Wipro’s existing competencies, it helps us penetrate into high growth segments like secure communications and gives us the capability to handle complete outsourcing deals in the evolving GSM, 3G and Tetra markets.”
“This is a win-win partnership. Wipro adds scale and global reach to Saraware’s domain competencies and strong Nordic presence. Together, we will be able to establish ourselves as leaders in the Wireless Networks and Secure Mobile platforms globally” said Risto Niva, CEO of Saraware.
Sudip Nandy, Chief Strategy Officer, Wipro Technologies commented “Over the past few months through acquisitions in Europe we have added local work force in Portugal , Austria, France, and Germany. Saraware gives us a local work-force in the Nordics through a presence in Finland. This is in line with our drive to transform ourselves into a truly global company with global workforce.”
The entire transaction is expected to be closed during the next one month. The closing of the transaction is subject to customary closing conditions and regulatory approvals.
Wipro Technologies is the first PCMM Level 5 and SEI CMM Level 5 certified IT Services Company globally. Wipro is one of the largest product engineering and support service providers worldwide. Wipro provides comprehensive research and development services, IT solutions and services, including systems integration, Information Systems outsourcing, package implementation, software application development and maintenance services to corporations globally. In Germany, Wipro trades under the name of WITfotech Solutions.
In the Indian market, Wipro is a leader in providing IT solutions and services for the corporate segment in India offering system integration, network integration, software solutions and IT services. Wipro also has profitable presence in niche market segments of consumer products and lighting. In the Asia Pacific and Middle East markets, Wipro provides IT solutions and services for global corporations. Wipro's ADS’ are listed on the New York Stock Exchange, and its equity shares are listed in India on the Stock Exchange - Mumbai, and the National Stock Exchange.
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