Wipro acquires SAIC unit for $150 million | business | Hindustan Times
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Wipro acquires SAIC unit for $150 million

business Updated: Apr 02, 2011 01:57 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Azim Premji-led software major Wipro on Friday announced its decision to acquire the global oil and gas IT arm of US-based technology company SAIC (Science Applications International Corporation for $150 million (Rs 675 crore). The acquisition would help Bangalore-based Wipro access SAIC’s 10 top clients in the oil and gas sector.

The acquisition would be funded through internal accruals in an all cash transaction.

“The global IT spend on energy and utilities space has been growing at around 10% and is expected to touch $19 billion (R85,000 crore),” said Anand Padmanabhan, Wipro’s senior vice president, energy, natural resources. “The domain consultancy and competencies brought in by the acquisition enhance Wipro’s capabilities in the upstream oil and gas space, and strengthens our position as a leader in servicing customers.”

The upstream oil and gas businesses refer to exploration and production of oil and gas.

The deal will give Wipro about 1,450 SAIC employees across North America , Europe, India and the Middle East. The acquired business unit of SAIC had an annual revenue of around $188 million for the four previous quarters.http://www.hindustantimes.com/Images/HTEditImages/Images/02_04_biz4.jpg

Post-economic slowdown, the Indian IT companies have been diversifying their business by focussing on vertical other than banking, finance and insurance. As demand for energy grows across the world there has been spurt in oil and gas explorations.

With oil companies looking to optimse operational costs the sector has opened new avenues for the IT services companies.