Wipro plans to continue with acquisition strategy
Chairman Azim Premji eyes bigger deals that will enhance Wipro's product and service offerings.india Updated: Jul 20, 2006 08:53 IST
Wipro Ltd, India's third largest IT firm, is set to continue its acquisition strategy, as its chairman Azim Premji eyes bigger deals that will enhance its product and service offerings.
"Going forward, the size of our acquisitions will be bigger than the previous ones from a strategic point. Bigger and stronger deals will give us strategic footprints in terms of our prospective offerings to our customers," Premji said.
Commenting on the company's organic and inorganic growth strategies, Premji said that during the last six months Wipro's global IT business division had made six acquisitions, including three in the first quarter (April-June) of the current fiscal (2006-07).
"These acquisitions are a culmination of discussions and due-diligence over the last 12 months. While these acquisitions have long-term strategic value, we are confident we will derive significant value from these in the medium term as well.
"We are confident that the investments made on the organic and inorganic sides to enhance our capabilities, and the initiatives we have kicked off will enable Wipro to achieve its vision of global leadership," Premji pointed out.
As part of its strategic acquisition spree, Wipro Technologies, the company's flagship division, bought out Enabler Informatica in June, a Europe-based retail solutions provider, for Rs 2.43 billion.
Similarly, Saraware Oy, an engineering and design services firm, based in Finland, was acquiredinJune for Rs 975 million, with an earn-out of seven million Euros based on financial targets over the next 18 months.
Quantech Global Services, a mechanical design services firm, based in the US and India, was acquired in May for an undisclosed amount.
In the consumer care and lighting segment, North-West Switches were acquired in May from the Delhi-based North-West Switchgear Ltd for Rs 1.05 billion.
Early in 2006 during the fourth quarter (January-March) of the last fiscal (2005-06), the IT division announced the acquisition of the US-based cMango Inc for $20 million.