Strategic deal to help clients of both
companies innovate faster
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading
global information technology, consulting and business process
services company has signed a definitive agreement to divest
Wipro’s hosted data center services business to Ensono, a leading
hybrid IT services provider for USD 405 million. Wipro will unlock
value by transitioning eight data centers, and over 900 employees
of its hosted data center services business to Ensono. The
acquisition significantly expands Ensono’s geographic footprint and
global service capabilities, taking the company one step closer to
achieving its vision of helping clients harness the power of hybrid
IT to transform their businesses on a global scale.
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Wipro and Ensono have also signed a long-term partnership
agreement to jointly address the hybrid IT requirements of Wipro’s
new and existing enterprise customers. As part of the agreement,
Wipro will make a strategic investment of USD 55 million in
Ensono’s combined entity.
Wipro has been providing comprehensive IT management solutions
for large and mid-size enterprises for over 25 years, and operates
world-class data centers, globally. The company has expertise
across multiple computing environments and platforms, including
mainframes, iSeries, Unix, Windows and Linux servers, and offers an
array of delivery models ranging from customized solutions
delivered in Wipro’s data centers to remote management and cloud
computing.
Hosted Datacenter services business is one of the three
businesses that became a part of Wipro when it acquired
Infocrossing Inc in 2007. The other two businesses -- Medicare
& Medicaid services in the health insurance space and ERP
implementation services -- have been integrated with other Wipro
businesses and are not part of this divestment.
“As we embrace our strategy of focusing on newer digital areas
of spend, our strategic investment and partnership with Ensono will
enable us to remain committed to meeting the hosted data center
services requirements of our customers. This partnership will
enhance the global data center footprint and expand the available
talent pool which will give us economies of scale and allow us to
offer end-to-end capabilities in the infrastructure space, better
than ever before,” said Kiran Desai, Senior Vice President,
Global Infrastructure Services, Wipro Limited.
Ensono provides hybrid IT services, from cloud to mainframe,
that enable clients to digitally transform their business. Through
the acquisition, Ensono is doubling in size, diversifying its
client portfolio and increasing its annualized revenue to be in
excess of USD 550 million. Beyond a growing geographic footprint
and data center presence, Ensono will manage over 260K MIPS and
over 30K hosted servers. Whether clients are leveraging the power
of the cloud or modernizing legacy technologies, Ensono helps
clients manage complex IT requirements, globally and across
industries.
“This is the third acquisition in less than three years for
Ensono. This particular acquisition and partnership with Wipro
substantially increases our ability to scale and service our
growing client portfolio. We are increasing our geographic presence
by expanding our data center operations in Germany, U.K. and the
U.S., as well as establishing an operational presence in India,”
said Jeff VonDeylen, CEO, Ensono. “These are strategic moves
that bring us one step closer to our vision of being a recognized
leader in true hybrid IT and a relentless ally to our clients.”
The acquisition is subject to customary closing conditions and
regulatory approvals and is expected to close in the quarter ending
June 2018. Ensono is a portfolio company of Charlesbank Capital
Partners and M/C Partners. Jefferies LLC acted as an exclusive
financial advisor to Ensono for this transaction, and Credit Suisse
Securities (USA) LLC acted as the sole financial advisor to Wipro.
Goodwin Procter LLP and Ropes & Gray LLP acted as legal
advisors to Ensono, and Hughes Hubbard and Reed LLP (for the US),
and DLA Piper (for Europe) were legal advisors to Wipro on this
transaction.
About Wipro Limited
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is a leading
global information technology, consulting and business process
services company. We harness the power of cognitive computing,
hyper-automation, robotics, cloud, analytics and emerging
technologies to help our clients adapt to the digital world and
make them successful. A company recognized globally for its
comprehensive portfolio of services, strong commitment to
sustainability and good corporate citizenship, we have over 160,000
dedicated employees serving clients across six continents.
Together, we discover ideas and connect the dots to build a better
and a bold new future.
About Ensono
For business leaders managing lots of complexity or disrupting
the status quo, Ensono delivers complete Hybrid IT services, from
cloud to mainframe, tailored to each client’s journey. Whether
you’re leveraging the power of the cloud or modernizing legacy
technologies, you’ll be on track to operate for today and optimize
for tomorrow. Named a Top 15 Sourcing Service Provider by ISG, some
of the world’s most successful companies rely on us to help them be
great at what they do. Ensono has over 1,000 associates across
North America and Europe and is ranked 21st in The Sunday Times 100
Best Companies to Work For. Our offices are headquartered in
greater Chicago. Visit us at www.ensono.com.
Forward-looking and Cautionary Statements
Certain statements in this release concerning our future growth
prospects are forward-looking statements, which involve a number of
risks, and uncertainties that could cause actual results to differ
materially from those in such forward-looking statements. The risks
and uncertainties relating to these statements include, but are not
limited to, risks and uncertainties regarding fluctuations in our
earnings, revenue and profits, our ability to generate and manage
growth, intense competition in IT services, our ability to maintain
our cost advantage, wage increases in India, our ability to attract
and retain highly skilled professionals, time and cost overruns on
fixed-price, fixed-time frame contracts, client concentration,
restrictions on immigration, our ability to manage our
international operations, reduced demand for technology in our key
focus areas, disruptions in telecommunication networks, our ability
to successfully complete and integrate potential acquisitions,
liability for damages on our service contracts, the success of the
companies in which we make strategic investments, withdrawal of
fiscal governmental incentives, political instability, war, legal
restrictions on raising capital or acquiring companies outside
India, unauthorized use of our intellectual property, and general
economic conditions affecting our business and industry. Additional
risks that could affect our future operating results are more fully
described in our filings with the United States Securities and
Exchange Commission. These filings are available at www.sec.gov. We
may, from time to time, make additional written and oral
forward-looking statements, including statements contained in the
company’s filings with the Securities and Exchange Commission and
our reports to shareholders. We do not undertake to update any
forward-looking statement that may be made from time to time by us
or on our behalf.
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version on businesswire.com: http://www.businesswire.com/news/home/20180314005577/en/
Media Contacts:Wipro LimitedVipin
Nairvipin.nair1@wipro.comorEnsonoBeth
Burghgraef+1-630-944-0257beth.burghgraef@ensono.com
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