Alexa
  • Directory of Taiwan

Indian outsourcing company Wipro in US$600 mln deal to buy US services firm Infocrossing

Indian outsourcing company Wipro in US$600 mln deal to buy US services firm Infocrossing

Indian outsourcing company Wipro Ltd. said Monday it is buying Nasdaq-listed Infocrossing Inc. in a deal that values the acquisition target at about US$600 million (euro434 million).
Wipro has offered to pay US$18.70 per share of the New Jersey-based company that provides select outsourcing services to mid-sized companies in the United States, said Wipro's Chief Financial Officer Suresh Senapaty.
The acquisition, the biggest-ever by an Indian services company, will help Wipro enhance its offerings to customers, especially those involving off-shoring of technology infrastructure services by Western companies to low-cost destinations like India, he said.
"We have been pursuing organic growth, and at the same time looking for inorganic opportunity," Senapaty said. "Infocrossing is a perfect fit (for Wipro)."
The board of Infocrossing has approved and recommended the deal to its shareholders. The offer from Wipro represents a 6 percent premium over the last closing price of Infocrossing shares, he said. Wipro plans to make an open offer to buy all outstanding shares of the company.
The transaction, which is subject to regulatory approvals, is expected to be completed by December, Wipro said, adding that the takeover will be funded from its own cash reserves.
Infocrossing operates five data centers and employs about 900 people. Its sales totaled US$229 million last year, leaving the company with a net profit of US$8.4 million, an Wipro statement said.