Wipro will divest its hosted data centre services business to Ensono, an IT services provider, for $405 million, as it seeks to increase its focus on digital.

Further, Wipro and Ensono have also signed a long-term partnership agreement to jointly address the IT requirements of Wipro’s new and existing enterprise customers. As part of the agreement, Wipro will make an investment of $55 million in Ensono’s combined entity. Ensono is a portfolio company of Charlesbank Capital Partners and M/C Partners.

This helps Wipro in unlocking value by transitioning eight data centres and around 900 employees of its hosted data centre services business to Ensono. For Ensono, the acquisition significantly expands its geographic footprint and global service capabilities.

For large and mid-size enterprises, Wipro operates centres globally for over two decades and the hosted data centre services business is one of the three businesses that became a part of Wipro when it acquired Infocrossing in 2007, an acquisition that seems to have not yielded good returns due to increased automation and advances made by cloud computing.

However, the company clarified that the other two businesses involving medicare and medicaid services in the US 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 focussing on newer digital areas of spend, our strategic investment and partnership with Ensono will enable us to continue meeting the hosted data centre services requirements of our customers. This partnership will enhance the global data centre footprint and expand the available talent pool that will give us economies of scale,” said Kiran Desai, Senior Vice-President, Global Infrastructure Services, Wipro.

Wipro has expertise across multiple computing environments and platforms, including mainframes, iSeries, Unix, Windows and Linux servers.

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