Within a week of acquiring Portuguese retail solution provider Enabler, Wipro has clinched one more all-cash deal on Thursday.
Software major has spent $200m on buyouts since Dec.
BANGALORE: Within a week of acquiring Portuguese retail solution provider Enabler for €41 million, Wipro Technologies clinched one more all-cash €25 million deal on Thursday for Finland's Saraware Oy, a leading design and engineering service provider for telecom companies.
The terms of the latest buyout include upfront cash payment and debt takeover, which is half of the deal price. There are also earn-outs on achieving targeted financial conditions over a period of 18 months.
The $20 million Saraware's profitability (earning before interest tax and amortisation - EBITA) is comparable to Wipro's. So it is not likely to impact its margins significantly.
Company officials said revenues from the new acquisition would start flowing from July. With this acquisition, Wipro's spend on acquisition since December 2005 has crossed $200 million.
Wipro Technologies president, product engineering services, Ramesh Emani, says, "This is not the end of it. We'll have a few more of them."
Emani said these acquisitions, which have mainly been concentrated in Europe (Portugal, Austria, France, UK, Germany and now Finland), are giving the company a stronger presence in that region. The latest acquisition is expected to enhance its product engineering services in the telecom segment, which is currently dominated by Nokia and Ericsson.
Close to 50% of global market share in wireless infrastructure domain is dominated by major players in the Nordic region.
"This acquisition gives us the much-needed local presence in Finland and puts us in the heart of the Nordic region. We need near-shore development centres as we take up more complex and end-to-end engagements with our customers," says Emani.
The acquisition adds expert domain competencies in the area of radio networks and secure mobile platforms, and brings in nearly 200 specialists in these domains based out Finland. Wipro also acquires two of Saraware's customers - Nokia (whose is already their customer) and French aerospace company Airbus' parent company European Aeronautic Defence and Space Company.
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