Wipro to buy ATCO subsidiary, provide solutions for 10 years

Company to spend Rs 1,178 cr on acquisition of ATCO I-Tek; expects annual revenue of Rs 678 cr from 10 years contact with ATCO

Bangalore-based Wipro has entered into a two-way pact with Canada’s ATCO under which the information technology (IT) services major will provide the Alberta-based company total outsourcing solutions for 10 years, and also buy its subsidiary ATCO I-Tek for $195 million (around Rs 1,177.8 crore) in cash.

As part of the total outsourcing contract, Wipro will provide complete suite of IT services to ATCO in Canada and Australia. The Indian company expects revenues of over $112 million (around Rs 677.6 crore) from the contract each year for the next 10 years, up to December 2024.

ATCO I-Tek has been providing IT services to ATCO for the past 15 years and has presence in North America and Australia. Wipro expects that the acquisition would strengthen its delivery model in the two regions. The contract is subject to customary closing conditions, Wipro said in a release.

“Our focus will be to enable ATCO to enhance their competitiveness by deployment of strategic solutions and efficient delivery of IT services,” said Anand Padmanabhan, chief executive - energy, natural resources and utilities at Wipro.

“We have traditionally had a strong position in the utilities space in Europe and this engagement provides momentum to our business in Canada and Australia. The alliance with ATCO enhances our capability to create, nurture and tap local talent to power our growth journey in Canada.”

Toronto Stock Exchange-listed ATCO has operations across structures and logistics, utilities, energy and technologies. The company has over 9,800 employees and assets of approximately $16 billion.