Wipro buys US-based back-office firm

Global software major Wipro Ltd. on Wednesday announced the acquisition of US-based back-office firm Viteos Group for alternative investment management industry for $130 million (Rs.861 crore).

"Our strategy is to invest in industry vertical platforms which will provide platform-based services to our clients in transaction or outcome-based pricing models. Viteos will further our strategy in the capital markets domain," Wipro chief executive for finance solutions Shaji Farooq said in a statement here.

Headquartered at Somerset in New Jersey, Viteos provides customised straight-through-processing and integrates post-trade operations across asset class, currency, border or structure for the alternative investment management sector in the US, Europe and Asia.

As a leader in shadow-accounting services, Viteos offers a range of middle and back-office outsourcing through its 400 employees.

"We will expand our capital markets portfolio in fund accounting services and enhance our business process service (BPS) capabilities with Viteos, which brings leadership, domain expertise and business process as a service (BPaaS) capability, Wipro BPS head Nagendra Bandaru said.

Viteos licenses its proprietary platform to offer transformation and integration of post-trade operations.

The platform can be leveraged to provide solutions across other segments of capital markets. The solutions will bring in non-linear and higher revenue realisation.

As a leading BPS provider to some global investment banks, Wipro specialises in platform-led transformation and utility-based offerings in reconciliation, KYC (know-your-customer) settlements, middle office, asset servicing and syndicated loans.

"Viteos will retain its identity to leverage its brand in the buy-side and expand its offerings into the larger asset management industry with the backing of Wipro's size and presence," the statement added.

Viteos' founder chief executive Shankar Iyer said its search for a global partner to expand market presence had culminated in acquisition by Wipro.

The deal is expected to be completed in the fourth quarter of this fiscal (2015-16), ending March 31, next year.