Firm evaluating options, could spend over $400 mn to buy a medium or large company

Wipro Technologies, whose financial performance has largely stabilised lately, is understood to be closing in on a mid- to large-sized acquisition that could be valued more that $400 million (around Rs 2,414 crore).

According to sources privy to the development, the Bangalore-based information technology (IT) services company, India’s third-largest, is evaluating a few fairly large options in geographies like the US and Germany. The company’s merger & acquisition team is learnt to be working overtime to ensure the deal is closed in the current quarter.

Asked about the plan, Wipro Chief Financial Officer & Executive Director Suresh Senapaty confirmed the company was scouting for an acquisition. He added the size and scale of the target company would not be a constraint, as Wipro had in the past successfully executed many acquisitions, some of those fairly large.

On the timing of the deal, Senapaty told Business Standard: “I can’t rule out (an acquisition in the April-June quarter), but I can’t say for sure… There are (talks), definitely. But if you ask about closure… of all the cases and everything in the deal, the answer is no. These are like binary situations… may happen, may not happen.”

Among business verticals, Wipro is primarily looking at strengthening its presence in areas like oil & gas, health care, analytics and cloud. With its acquisition of US-based SAIC’s global oil & gas technology services business in 2011 for $150 million, the company had made this intention clear.

For more visit: Business Standard

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