Wipro to acquire Citigroup’s Indian IT subsidiaryDecember 23rd, 2008 - 7:24 pm ICT by IANS
Bangalore, Dec 23 (IANS) India’s second largest IT bellwether Wipro Technologies Tuesday announced acquisition of Citi Technology Services, the India-based captive provider of IT services and solutions to Citigroup entities worldwide, for $127 million in an all-cash deal.As part of the deal, Wipro and Citi will sign a Master Services Agreement for delivery of technology infrastructure services and application development and maintenance services for six years, which is projected to accrue $500 million during the contract.
“Citi has played a pioneering role in leveraging technology for banking. Our domain expertise and infrastructure management capabilities have positioned us as their partner of choice,” said Wipro joint chief executive Girish S. Paranjpe at a hurriedly convened press conference here to announce the deal.
Revenue of City Technology is expected to be about $80 million in 2008.