Wipro acquires two firms for $23 mn
The acquisition price may rise marginally as some components of the payment is liked to the performance of the acquired units.india Updated: Oct 27, 2006 20:22 IST
Wipro Ltd, the country's third-largest software company, has acquired the operations of two companies, 3D Networks and Planet PSG for $23 million in an all-cash deal giving its Wipro Infotech division that addresses the Asian and Middle-East markets access to a key partner of telecommunications equipment maker Nortel Networks, which is already a major client for the Bangalore-based company.
The acquisition price may go up marginally as some components of the payment is liked to the performance of the acquired units over the next two years, said Suresh Senapaty, Wipro's chief financial officer.
3D Networks, a Platinum partner of Nortel Networks, provides business communication solutions that include consulting; voice, data and converged solutions; and managed services to companies engaged in information technology and IT-enabled services.
The company’s specialised solutions are deployed in ITES/IT, telecommunications, banking and finance, government and service sectors.
"The acquisition will help Wipro in becoming a dominant player in the segment," Senapaty said.
In India, 3D Networks, which has an employee base of 270, has a dominant presence in providing business communication solutions to hot information technology-enabled businesses like call centres.
In 2005-06, the company posted revenues of around $ 36 million, a growth of 39 per cent over the previous financial year.
Planet PSG is the sole global technical services partner for Nortel's Periphonics platform in the Asia-Pacific region and provides professional services on voice and speech platforms.
"India’s emergence as the outsourcing hub for global majors is fuelling demand for convergence solutions," said Suresh Vaswani, president of Wipro Infotech.
First Published: Oct 27, 2006 20:22 IST