Wipro gains on selling hosted data centre biz

Wipro rose 2.78% to Rs 301.50 at 9:33 IST on BSE after the company said it will divest hosted data center services business to US-based Ensono for $405 million.

The announcement was made after market hours yesterday, 14 March 2018.

Meanwhile, the S&P BSE Sensex was down 51.39 points, or 0.15% to 33,784.35.

On the BSE, 42,000 shares were traded in the counter so far compared with average daily volumes of 7.49 lakh shares in the past two weeks. The stock had hit a high of Rs 302 and a low of Rs 294.85 so far during the day. The stock hit a 52-week high of Rs 334.75 on 16 January 2018. The stock hit a 52-week low of Rs 242.38 on 24 April 2017.

Wipro said it signed a definitive agreement to divest its hosted data center services business to Ensono, a leading hybrid IT services provider, for $405 million. Wipro will unlock value by transitioning eight data centers, and over 900 employees of its hosted data center services business to Ensono.

Wipro and Ensono have also signed a long-term partnership agreement to jointly address the hybrid IT requirements of Wipro's new and existing enterprise customers. As part of the agreement, Wipro will make a strategic investment of $55 million in Ensono's combined entity.

Hosted Datacenter services business is one of the three businesses that became a part of Wipro when it acquired Infocrossing Inc in 2007. The other two businesses -- Medicare & Medicaid services in the health insurance space and ERP implementation services -- have been integrated with other Wipro businesses and are not part of this divestment.

In a separate announcement after market hours yesterday, 14 March 2018, Wipro announced a strategic partnership with Trintech to deliver digital solutions that help simplify and automate business finance functions at enterprises. Trintech is a leading global provider of integrated, cloud-based Record to Report (R2R) finance software solutions for the office of finance.

Wipro's consolidated net profit fell 11.85% to Rs 1930.10 crore on 1.82% growth in net sales to Rs 13669 crore in Q3 December 2017 over Q2 September 2017.

Wipro is a leading global information technology, consulting and business process services company.

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