Wipro to buy Enabler for 41 mn euros
At the same time, Portuguese phone and Internet company Sonaecom has sold its Retailbox unit to Wipro.india Updated: Jun 02, 2006 13:35 IST
India's third-largest software services exporter, Wipro Ltd, said on Thursday it had agreed to acquire Europe-based retail solutions provider Enabler for about 41 million euros ($52.41 million) in an all-cash deal.
At the same time, Portuguese phone and Internet company Sonaecom said it had sold its Retailbox unit to Wipro for a capital gain of 23 million euros. Retailbox is the controlling shareholder of Enabler.
The buyout will help Bangalore-based Wipro strengthen its services to global retailers, said Sudip Banerjee, president for enterprise solutions at Wipro Technologies.
"The acquisition will be profit accretive with immediate effect," he said.
Enabler has 310 staff and its turnover exceeds 30 million euros. Founded in 1997, the company has a presence in Italy, Germany and France amongst other European countries, according to its website.
Last week, Wipro Chairman Azim Premji had said in an interview in Tokyo that the firm was scouring Europe and the United States for acquisitions.
Wipro has been swallowing up smaller players to help it remain ahead of average industry growth rates. Enabler is Wipro's fifth purchase since December.
New York Stock Exchange-listed Wipro has about $1 billion in cash on its balance sheet.
The stock closed 1.3 per cent lower at Rs 443.85 on the Mumbai exchange outperforming the 3.15 per cent slide on the 30-issue main index.