Wipro has signed a definitive agreement to acquire Viteos Group, a business process as-a-service (BPaaS) provider for the alternative investment management industry, for a purchase consideration of $130 million (about Rs 860 crore).
Wipro shares were trading flat on the NSE at Rs 556 at 10.30 am.
Viteos was founded in 2003 and is headquartered in Somerset, New Jersey, and is a leader in shadow-accounting services and offers middle- and back-office outsourcing through its more than 400 employees.
The acquisition is subject to customary closing conditions and regulatory approvals and will be completed in the quarter ending March 31, 2016.
"The IT services industry is moving to an ‘as-a-Service' model, and the future of BPS is going to be BPaaS. Our strategy is to invest in industry vertical platforms which will provide platform-based services to our clients in transaction and outcome-based pricing models. Viteos will further our strategy in the capital markets domain,” said Shaji Farooq, President & Chief Executive, Finance Solutions at Wipro.
Wipro is a provider of Business Process Services (BPS) to a number of global investment banks with specializations in platform-led transformation and utility-based offerings in reconciliation, settlements, middle-office, asset servicing, syndicated loans and reference data solutions, with coverage across asset classes.
These specialisations of Wipro are primarily on the sell-side of the industry and this acquisition will add similar capabilities on the buy-side, it added.