Wipro jumps on Infocrossing
Indian firm looks to buy Nasdaq-listed outsourcing outfit
Wipro Technologies, the global IT services arm of Indian outsourcing firm Wipro Ltd, said it has signed a $413.27m all-cash deal to acquire Infocrossing Ltd.
The firm has offered $18.70 per share for Infocrossing which is a Nasdaq-listed, New Jersey-based IT infrastructure specialist that provides outsourcing services to SMBs in the US.
The deal, which is expected to close in December this year subject to regulatory approval, will be the biggest of its kind made by an Indian services firm.
Wipro reported healthy profits in the first half of 2007 with net income up 16 per cent to 7.1bn rupees ($175m) as demand for outsourcing in India rose.
It said the acquisition would help Wipro extend its IT outsourcing reach, enhancing its portfolio and making it a more attractive business proposition for US and European firms looking for low-cost, off-shore alternatives.
Infocrossing has some 900 staff and runs five data centres in the US. ®