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Rediff News  All News  » Business » Wipro acquires US firm for $28 mn

Wipro acquires US firm for $28 mn

December 23, 2005 12:52 IST
Wipro has signed a definitive agreement to acquire mPower Inc, a Princeton, New Jersey-based company with a development centre in Chennai, and MPACT Technology Services, based in Chennai, for an all-cash consideration of $28 million.

According to a release issued by Wipro to the Bombay Stock Exchange, mPower, which is a niche company focused on payment space, has a total annualised revenue of around $18 million and an annualised EBIT of around $4.6 million.

"Wipro Technologies has also entered into a strategic engagement with MasterCard International by acquiring 100 per cent stake in MPACT, a joint venture between MasterCard and mPower," the release added.

Wipro Technologies adds a 300-member strong team and deep domain expertise in the payment space, which will enable it to expand its addressable market in the financial solutions business.

"As a part of the agreement, Wipro Technologies will provide MasterCard and other clients in the payment space with a wide range of services that could include application development and maintenance, infrastructure services, package implementation, BPO and testing," the release said.

Sriram Srinivasan, vice president (banking solutions) of Wipro Technologies, said: "The payments industry is an area where we expect to see rapid growth in the near future, and this acquisition strengthens our capability in the payments arena. Our 360 degree integrated IT and BPO service portfolio, understanding of regulatory frameworks and experience in improving operational efficiencies, positions us as an ideal partner for payment solutions companies including MasterCard."

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