Wipro buys 3D Networks for $73 mn

Wipro Infotech announced today it had signed an agreement to acquire the West Asia and SAARC operations of 3D Networks and Planet PSG in an all-cash deal.

The agreement includes an upfront cash payment of approximately $23 million on closure of the transaction and additional performance-linked payments, estimated to be around $50 million, based on achieving agreed financial targets over two years.

This is Wipro's eighth acquisition since December 2005. Wipro Infotech is the India, West Asia and Asia Pacific infotech business unit of Wipro Ltd.

The company will use this acquisition to beef up its infrastructure services arm. Recently, it won two contracts worth $100 million spread over around 10 years covering application and infrastructure provisioning and management.

"India's emergence as the outsourcing hub for global majors is fuelling demand for convergence solutions. 3D Networks' strong integration skills in convergence technologies, its customer base and proven track record complement and enhance our services," said Suresh Vaswani, president, Wipro Infotech, and president, global IT service lines, Wipro Technologies.

MAPE Advisory Group advised Wipro on this transaction.

3D Networks, a platinum partner of Nortel Networks, provides business communication solutions including consulting, voice, data and converged solutions, and managed services. During 2005-06, 3D Networks clocked revenues of approximately $36 million.

In India, 3D Networks has a dominant presence in providing business communication solutions to infotech and enabled segments and has approximately 270 employees serving several marquee customers.

"It allows us to leverage Wipro's comprehensive infotech solutions offering and strong quality processes in our customer base," said SK Jha, regional director "" SAARC and West Asia, 3D Networks.

Planet PSG is the sole global Nortel technical services partner on the Periphonics platform in Asia Pacific and provides professional services in voice and speech.

"We are excited about this partnership. It is the beginning of a strategic relationship with a global organisation," said Yoon Mun Chiew, group CEO, Planet PSG.