Wipro to buy European co for 41 mn Euros

MUMBAI: Wipro Technologies on Thursday said that it would acquire Europe-based retail solutions provider, Enabler for 41 million Euros in an all cash deal.

The consideration includes an upfront cash payment of around 41 million Euros on closure of the transaction and earn-outs on achieving the agreed financial targets over a two year period, Wipro Ltd informed the Bombay Stock Exchange.

The entire transaction would be closed during the next one month, subject to customary closing conditions and regulatory approvals, it added.

During the calendar year 2005, Enabler's revenues were approximately 30 million Euros and Wipro's profitability was in line with industry leaders and its peers in the IT services space.

"Enabler's proven and reference-able track record in retail domain consulting and package implementation skills helps us strengthen our position as a preferred solutions provider to large retailers globally," Wipro Technologies Enterprise Solutions President Sudip Banerjee said.

Enabler was created in 1997, through the separation of IT department of Portugal's leading retailer, Modelo Continent, a division of Sonae Group.

The European company is a preferred integrator of Oracle Retail solution - Retek and provider of consultancy and has delivery centres in Portugal and Brazil, with over 300 employees serving customers in Portugal, UK, Germany, France, Spain, Italy, Middle East and Brazil.

Langham Capital was the financial advisors to Wipro on this transaction.