Wipro completes transaction to absorb Vara Infotech employees

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IT services major Wipro on Tuesday said it has completed the transaction under which it was to absorb certain employees of Vara lnfotech as part of its USD 300 million (about Rs 2,100 crore) deal with ICICI Bank.

In September, Wipro had said it had secured a strategic seven-year engagement, valued at USD 300 million, from ICICI Bank to provide a comprehensive suite of services.

As part of the engagement, Wipro was to absorb about 3,800 employees of Vara lnfotech (which was previously providing these services to ICICI) along with its existing contracts, facilities and assets, on a going concern basis, through a business transfer agreement for an all-cash consideration of Rs 321 crore.

"We would like to inform that the aforesaid transaction has been completed on September 30, 2019," Wipro said in a regulatory filing on Tuesday.

In its previous filing in September, Wipro had said this business generated revenue of Rs 221.5 crore in the last financial year (2018-19).