Wipro to acquire Viteos Group for $130 million
Wipro said it will acquire the US-based Viteos Group for USD 130 million (nearly Rs 861 crore), a move that will help the country’s third-largest IT services firm strengthen its position in the capital markets outsourcing space.business Updated: Dec 23, 2015 17:42 IST
Wipro said it will acquire the US-based Viteos Group for USD 130 million (nearly Rs 861 crore), a move that will help the country’s third-largest IT services firm strengthen its position in the capital markets outsourcing space.
“Wipro has signed a definitive agreement to acquire Viteos Group, a BPaaS provider for the Alternative Investment Management Industry, for a purchase consideration of USD 130 million,” it said in a statement.
Founded in 2003 and headquartered in Somerset, New Jersey, the Viteos Group provides customised straight-through-processing and integrates post-trade operations across every asset class, currency, border or structure for the alternative investment management industry in the US, Europe and Asia.
A leading player in shadow-accounting services, the company offers middle and back-office outsourcing through its over 400 employees.
Viteos’ technology-based solutions will bring in non-linear and higher revenue realisation, Wipro said. The acquisition is subject to customary closing conditions and regulatory approvals and will be completed in the quarter ending March 2016.
“Viteos will retain its identity to leverage its brand in the Buy-Side and expand its offerings into the larger asset management industry with the backing of Wipro’s size and presence,” it added.
The management team at Viteos will continue with the business and drive the platform-based outsourcing business services, the statement said.
“The IT services industry is moving to an ‘as-a-Service’ model, and the future of BPS is going to be BPaaS (Business Process as-a-Service). Our strategy is to invest in industry vertical platforms which will provide platform-based services to our clients in transaction/outcome-based pricing models. Viteos will further our strategy in the capital markets domain,” Wipro president and chief executive (finance solutions) Shaji Farooq said.
“Our search for a global partner who gives Viteos exceptional market reach in expanding our presence while preserving the entrepreneurial characteristics of Viteos culminated with this acquisition by Wipro,” said Shankar Iyer, CEO and founder of the Viteos Group.