Wipro buys Infocrossing in largest overseas acquisition
Continuing with its ‘string of pearls’ strategy, Wipro acquires Infocrossing valued at $600 million, reports Venkatesh Ganesh.business Updated: Aug 07, 2007 02:37 IST
Continuing with its ‘string of pearls’ strategy, India’s third largest software exporter Wipro Technologies on Monday acquired Infocrossing, a US technology services company, valued at $600 million. This is the largest overseas acquisition in terms of market value.
Wipro paid $18.70 per share in an all-cash deal. On hearing the acquisition news, Wipro shares closed at Rs. 457.85, 12.4 points lower to the previous close of Rs. 470.25, which happened to be their lowest close over a year.
Infocrossing has revenues of $232.4 million for the 12 months ended March 31, and the company provides infrastructure management solutions, including server management, mainframe outsourcing, network management and security services, Wipro said.
“With its platform based solutions, Infocrossing also brings in significant expertise in health plan and payer management segments,” said Sudip Banerjee, president of enterprise solutions of Wipro Technologies.
According to sources in Wipro, the special team that was formed last year to go after deals and contracts in excess of $50 million was instrumental in bagging this deal. Before this deal, Wipro has spent $388 million in acquiring 23 companies and by far, is the most active firm in this segment.
According to industry observers, acquisition in the healthcare segment is one of the areas that the company was looking to fill and this acquisition fits that gap. “With this acquisition, Wipro has a more diverse portfolio to offer from financial services to chip-design.
Rival and competitor Infosys Technologies, bought out three BPO units of consumer electronics major Philips a fortnight back for $27 million.