By IANS
Bangalore : Wipro Technologies, the IT bellwether’s global services and products division, announced Monday it was acquiring US-based IT solutions and BPO services provider Infocrossing Inc. for $598.4 million (Rs.24.15 billion) in an all-cash deal.
“The acquisition of the Nasdaq-listed Infocrossing will be through a tender offer for its 32 million outstanding shares at the rate of $18.70 per share and the transaction will be completed by December,” Wipro vice-president and chief financial officer Suresh Senapaty told reporters at a hurried press conference after the Indian stock markets closed for trading.
The Leonia-headquartered Infocrossing has about 900 employees and posted revenue of $232.4 million in the last fiscal (FY 2007) ending March 31, with a net income of $9.3 million. It has five data centres across the US in California, Georgia, Arizona, Nebraska and New Jersey.
“The acquisition is not only the largest in value, but also the first one in the US market, which accounts for over 60 percent of our flagship IT division revenue. The offer price includes 13 percent premium over the average price of its share traded during the last six months,” Senapaty told IANS on the sidelines of the press briefing.
Set up in 1985 and listed on the Nasdaq in 1992, about 70-80 percent of Infocrossing’s shares are held by financial institutions, while promoters hold 10 percent and the balance by retail investors through mutual funds and brokerage firms.
“Post-acquisition, Infocrossing will be merged with our US-based subsidiary — Wipro Inc. All the existing employees will be retained to serve its 200-odd client base, worldwide,” Senapaty added.