Wipro to divest hosted data centre services business

Global software major Wipro on Wednesday announced selling its hosted data centre services business to US-based hybrid IT services provider Ensono for $405 million (Rs 2,633 crore).

"The deal will result in Ensono acquiring our eight data centres along with their 900 employees to expand its footprint and global service capabilities," said the city-based IT major in a statement here.

The two entities also signed an agreement to jointly address the hybrid IT needs of Wipro's enterprise customers worldwide.

"As part of the deal, we will invest $55 million (Rs 358 crore) in Ensono's combined entity," said Wipro.

The acquisition is expected to close in the quarter ending June 2018.

Wipro, which has been providing IT management solutions for enterprises since 1993, operates data centres globally, with expertise across multiple computing environments and platforms, including mainframes, iSeries, Unix, Windows and Linux servers.

The data centre services was one of the three businesses that became a part of Wipro when it acquired Infocrossing Inc for $600 million in 2007.

The other two Infocrossing businesses -- medicare and medicaid services in the health insurance space and ERP (Enterprise Resource Planning) implementation services were integrated with the company's other businesses and are not part of this divestment.

"As we focus on newer digital areas of spend, our investment and partnership with Ensono will enable us to remain committed to meeting the hosted data centre services needs of our customers," said Wipro Vice-President for global infrastructure services Kiran Desai.

The Chicago-headquartered Ensono provides hybrid IT services, from cloud to mainframe, that enable clients to digitally transform their business.

The acquisition of Wipro's date services will double Ensono's size, diversify its client portfolio and increase its annual revenue to $550 million.

"The acquisition and partnership with Wipro increases our ability to scale and service our clients and expand our data centre operations in Germany, Britain and the US, besides establishing an operational presence in India," said Ensono CEO Jeff Von Deylen in the statement.

Ensono is a portfolio firm of Charlesbank Capital Partners and M/C Partners.

--IANS

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