Wipro to acquire SAIC's unit for $150 mn
SAIC owns the Global Oil and Gas Information Technology practice which provides consulting, system integration and outsourcing services to some of the major global oil companies.
This acquisition will add nearly 1,450 employees on Wipro's payroll across North America, Europe, India and Middle East.
Wipro's Energy, Natural Resources and Utilities Strategic Business Unit (SBU) is a high-growing SBU and this acquisition will further strengthen Wipro"s leadership position in the segment. It is also expected that IT spend in this sector will grow with customers' focus to grow newer streams of revenues. They will seek to optimize operational costs while becoming environmentally conscious.
Anand Padmanabhan, Senior Vice President, Energy, Natural Resources and Utilities SBU, Wipro Technologies said, "Oil & Gas companies are investing in the upstream business while looking at rationalizing cost through IT. The acquisition of SAIC's Global Oil & Gas Information Technology practice will strengthen Wipro's existing Energy business unit in becoming a long term strategic partner in our customer's transformation journey." He added that this will further strengthen Wipro's position as an end to end leader in servicing customers.
Rex Ballard, Senior Vice President and General Manager of SAIC's Commercial Business Services business unit said, "Bringing our skills and client base to Wipro increases our combined market potential and positions us to capitalize on commercial business opportunities across the full breadth of the oil and gas industry."
This acquisition is in line with the new change in management. The performance of Wipro for December 2010 quarter lagged its peers. Thereafter the company had seen an overhauling of management structure. From having two heads of each division, the company moved in the direction where only one person heads a full division.