Wipro buying US firm’s IT business for $150 mn

April 1st, 2011 - 11:47 pm ICT by IANS  

Bangalore, April 1 (IANS) Global software major Wipro late Friday announced it was buying the oil and gas IT service business of the US-based Science Applications International Corporation (SAIC) for $150 million (Rs.68 crore) in an all-cash deal.

The Virginia-headquartered SAIC’s IT business unit provides consulting, system integration and outsourcing services to global oil majors with domain expertise in digital oil field, petro-technical data management and petroleum application services for the upstream segment.

“Post-acquisition, 1,450 employees of the $10-billion Fortune 500 firm will join Wipro and will be based across the US, Europe, India and the Gulf region,” the company said in a statement here and in New York.

The acquisition will also strengthen the IT bellwether’s presence in the global oil and gas sector through its energy, natural resources and utilities strategic business unit.

“IT spend in the energy sector is expected to grow as customers look for newer streams of revenues, optimise operational cost and find better ways to become environmentally conscious,” Wipro vice-president Anand Padmanabhan said.

With oil and gas companies in upstream business looking at rationalising cost through IT, the domain consultancy and competencies of SAIC’s IT services unit will enhance Wipro’s position as an end-to-end leader in servicing customers.

“Bringing our skills and client base to Wipro will increase our combined market potential and positions us to capitalise on business opportunities across the oil and gas industry,” SAIC’s IT services unit vice-president Rex Ballard said in the statement.

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