Wipro to acquire Viteos group for $130 mn
Wipro announced that it has signed a definitive agreement to acquire Viteos Group, a BPaaS provider for the Alternative Investment Management Industry for a purchase consideration of $130 million. The company says that the acquisition will expand Wipro's capital markets portfolio in fund accounting services and enhance its business process services capabilities. The deal will be completed by the fourth quarter of FY 2015-16.
Wipro is a global information technology, consulting and outsourcing company. Headquartered in Bangalore, the company has a 160,000+ workforce serving clients in 175+ cities across 6 continents. On 31 March 2015, its market capitalization was approximately $35 billion, making it one of India's largest publicly traded companies and seventh largest IT services firm in the world.
Indian IT companies have a long way to go to catch up with their global outsourcing peers like Accenture, IBM when it comes to the social, mobile, analytics and cloud (SMAC) or digital space. Companies like TCS, Infosys and Wipro have been slowly but steadily investing more in strengthening their service offerings in the digital space, which includes aggressive acquisitions in the area.
Launched in April 2014, Wipro's new division 'Wipro Digital' is carved from its year-old vertical of advanced technologies solutions or ATS and focuses on social, mobility and cloud practices.
Wipro Ltd had acquired Denmark-based Designit for $95 million. Denmark-based Designit offers solutions in strategic design and innovation services, including product, service, and experience design to clients across healthcare, automotive and consumer goods industries. Wipro said that the acquisition of Designit, with revenue of $30 million, was its first big step in eventually generating $1 billion of revenue from its new Wipro Digital arm.
Business process as a service (BPaaS) is a form of business process outsourcing (BPO) that employs a cloud computing service model. BPaaS reduces labor count through increased automation, thereby cutting costs in the process.
Viteos Group was founded in 2003 and is based in Somerset, New Jersey. Viteos offers an array of solutions including processing, reconciliation of trade, settlements, customer data, for investment banking clients in Europe, US and Asia. Viteos provides customized processing and integrates post-trade operations across every asset class, currency, border or structure for the alternative investing management industry in the US, Europe and Asia.
Shaji Farooq President of Finance Solutions, Wipro said, "The IT services industry is moving to an 'as-a-Service' model, and the future of BPS is going to be BPaaS." He added, "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." Frooq belives that Viteos acquisition will help this strategy.