Wipro to Buy Citi Technology Unit for $127 Million – Bloomberg
SOURCE: Bloomberg
DATE: Dec 23rd, 2008
Wipro Ltd., India’s third-largest software services provider, agreed to buy Citigroup Inc.’s Citi Technology Services Ltd. for about $127 million in cash.
Citi Technology Services, based in India, mainly provides software and solutions to the banking industry and has 1,650 employees, Bangalore-based Wipro said in a statement today. As part of the deal, Citigroup will source services worth at least $500 million over the next six years from Wipro.
Chairman Azim Premji is following smaller rival HCL Technologies Ltd. in seeking acquisitions that will help him get clients looking to cut costs as the global economic recession forces corporations to reduce technology spending.
U.S. information-technology spending growth will slow to 1.6 percent in 2009, Forrester Research Inc. said in a report on Dec. 9, revising an August forecast for 6.1 percent growth next year.
The Citi unit acquisition will be Wipro’s second purchase of a technology-services company in as many years. The Indian provider acquired Infocrossing Inc. for $548 million in 2007.
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