Wipro all set to acquire Infocrossing
Sunday, August 19, 2007
Wipro Ltd., India's third-largest software company based in the southern Indian city of Bangalore, will acquire U.S.-based Infocrossing Inc., which provides information technology outsourcing to mid-sized companies in the United States, for $600 million to add customers and widen the services on offer. Wipro has offered to pay $18.70 per share of the New Jersey-based company. The acquisition, the biggest-ever by an Indian services company, will help Wipro enhance its service, especially the off-shoring of technology infrastructure services by Western companies to low-cost destinations like India.
The acquisition will add five data centers and about 900 employees to Wipro Ltd. Wipro and larger rivals Tata Consultancy Services Ltd. and Infosys Technologies Ltd. have been buying software services companies overseas to bolster their menu of offerings and also acquire new clients. Buying a competitor in the U.S., the main market for India's software services industry, allows companies to be nearer to their customers.
Infocrossing reported a net income of $1.8 million on revenue of $59.2 million for the first quarter ended March 31, the company said on its Web site. Infocrossing has customers such as Sunoco Inc., the largest oil refiner in the U.S. Northeast, and Swiss drugmaker Novartis AG.
Labels: Indian Corporate
posted by Mohanan @ 8:03 AM,
