Wipro sitting on $2-billion war chest, eyes more acquisitions | business | Hindustan Times
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Wipro sitting on $2-billion war chest, eyes more acquisitions

business Updated: Jul 27, 2014 23:28 IST
Manu P Toms
Manu P Toms
Hindustan Times
Wipro Ltd

Armed with a $2-billion cash chest, India’s third-largest software services exporter, Wipro Ltd, is eyeing buyouts, especially IT service companies that cater to healthcare and manufacturing sectors.

The acquisition binge comes just a week after the company bought the IT services of Canadian firm ATCO for $195 million (Rs 1,176 crore).

“We are currently involved in 8-10 discussions,” Jatin Dalal, chief financial officer, IT business, Wipro told HT.

Wipro has shortlisted a few firms valued between $ 50 million (Rs 300 crore) and $200 million (Rs 1,200 crore), Sangita Singh, CEO, healthcare and life sciences, Wipro, told HT earlier.

“We look at ATCO deal more as a large outsourcing contract than an acquisition,” Dalal said.

Wipro’s acquisition of ATCO’s IT arm came bundled with a $1.2- billion (Rs 7,212-crore) 10 year outsourcing contract.

About future acquisitions, he said: “It has to be affordable and a strategic fit which will fill the gap we see in our portfolio and a cultural fit. We have a certain way of doing business. It should align with that.”

“It may be an IT service company or a service company coupled with products. Platforms that enable us serve our customers and enhance our service offerings yes, but certainly not a pure play IT product company,” he added.

The company’s key focus for growth is winning large deals, especially in major markets such as North America and Europe.