CORRECTING and REPLACING Wipro Acquires cMango Inc., a U.S.-based Technology Infrastructure Consulting Firm; Acquisition to Esta
February 22 2006 - 4:09PM
Business Wire
Reissuing release to add ticker symbol for searching purposes. The
release reads: WIPRO ACQUIRES CMANGO INC., A U.S.-BASED TECHNOLOGY
INFRASTRUCTURE CONSULTING FIRM; ACQUISITION TO ESTABLISH WIPRO'S
LEADERSHIP IN THE BUSINESS SERVICE MANAGEMENT SPACE Wipro Limited
(NYSE:WIT), today announced that it has signed a definitive
agreement to acquire cMango Inc., a Sunnyvale, California,
U.S.-headquartered company in an all cash deal. cMango has multiple
offices in the U.S. as well as offices in the UK, Singapore and a
Delivery center in Pune, India. Under the terms of the agreement,
the consideration to acquire 100% stake in privately held cMango
includes cash payment of $20 Mn on closure of the transaction as
well as earn-outs based on achieving targeted financial metrics
over a two year period. cMango, a company focused on Business
Service Management (BSM) Solutions, has annualized revenue of
around $13 Mn. cMango will be part of the Technology Infrastructure
Services (TIS) Service-line of Wipro Technologies, a leader in
remote infrastructure services. Wipro Technologies is the Global IT
division of Wipro Ltd. cMango creates business solutions for
customers using the right combination of People, Process and
Technology. cMango's services comprise business transformation,
ITIL consulting, service management solution architecture,
implementation, training and support services. cMango leverages the
industry's top BSM solutions from BMC(R) Software Inc. (NYSE:BMC)
such as BMC Remedy, BMC Marimba and other complementary
technologies. In addition to being a BSM Certified Partner, cMango
is a BMC Value Added Reseller, Systems Integrator and Technical
Support and Training Partner for BMC. cMango is also a BMC Managed
Services Partner. Commenting on the transaction, Pravin Jain, CEO,
cMango said, "The cMango team is delighted to join the Wipro
family. This partnership brings together the specialized expertise
of cMango in BMC's BSM solutions and Wipro's wide range of services
and extended global reach. We are confident that this winning
combination can significantly expand the market addressed and
provide superior customer solutions, emerging as the leader in the
BSM space." The acquisition is in line with Wipro's strategy to
invest in areas where it can establish leadership through
differentiated service lines and domain knowledge. Wipro is the
leader amongst offshore Infrastructure Management Services players
and has a track record of rapid growth in its Technology
Infrastructure Services business (last quarter growth rate was 45%
Year on Year and 16% sequential), and expects this acquisition to
help scale growth in this area. "Business Service Management
implementations are accelerating globally as IT and business
leaders recognize the competitive advantages BSM delivers by
empowering companies to manage their IT infrastructure from a
business perspective," said Bob Beauchamp, President and CEO, BMC
Software. "The union of cMango's proven BSM implementation
capabilities and Wipro's reach will deliver significant benefits to
companies moving to a BSM model." Through this acquisition, Wipro
Technologies adds a 120-member strong team and deep domain
expertise in BSM, which enables IT to deliver faster, more
comprehensive and consistent business services, while increasing
revenue opportunities and reducing service cost and business risk.
"Technology Infrastructure Services is a differentiated service
line wherein we constantly innovate in enhancing service offerings
and transforming the service delivery paradigm in our quest for
delivering superior customer value. The acquisition of cMango
furthers our relationship with BMC, the leading provider of BSM
solutions, and strengthens our capability in this arena that
focuses on business criticality. Wipro's offerings in the
Infrastructure Management space combined with the consulting edge
of the BSM layer will offer a compelling value proposition for our
customers and propel significant growth," said Suresh Vaswani,
President, Global IT Service Lines, Wipro Technologies. Commenting
on the acquisition, Sudip Nandy, Wipro's Chief Strategy Officer
said, "This acquisition is a significant milestone in our strategy
towards creating a strong value proposition in emerging areas in a
growth business like Technology Infrastructure Services. We see
significant value from the cMango team through their potent
consulting skills, breadth of service portfolio and domain depth."
The closing of the transaction is subject to customary closing
conditions and regulatory approvals, which are expected to be
concluded by April 2006. For details about Wipro Limited &
forward-looking and cautionary statements please see link below:
http://www.wipro.com/newsroom/about_wipro.htm For more information
on cMango, visit www.cmango.com
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