Wipro acquires Quantech Global in all cash deal

Bangalore, May 15 (UNI) In an all cash deal for an undisclosed amount, Wipro today acquired 100 per cent equity in Quantech Global of the US and its subsidiary in India to enable the IT major to offer one stop solution to its clients.

With a base of over 20 companies, most of them in the automotive sector spread across the US, Europe and Japan, Quantech closed last year with a turnover of US Dollars 13 million and grew at a compounded annual growth rate of 15 per cent over the last eight quarters. Quantech provided servies around Computer Aided Design and Computer Aided Engineering (CAD/CAE) and had around 500 experts in the field operating out of its offices in Bangalore, Hyderabad and the US.

Announcing the deal, Wipro Chief Operating Officer A L Rao said the acquisition would be closed within the next three weeks. The deal involved an upfront payment initially, with the balance to be paid after three years.

Dr Rao said the new entity combined the strengths of the two companies in the areas of project engineering and packaging as well as Industrial Engineering. The small-scale of operations limited Quantech's growth and with the acquisition the growth would be significant, he added.

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