Wipro on prowl for buys in US, Europe

IT major Wipro plans to acquire 9-12 companies in the US, western Europe and the Asia Pacific region. Due diligence in this regard is on and the deals "� worth $50-200 million (Rs 300-1,000 crore) "� are across the healthcare, travel, telecom and manufacturing verticals.

Sudip Nandy, chief strategy officer, Wipro Technologies (the mainline global IT business of Wipro), said, "We might finalise at least one deal before the end of this quarter." Speaking on the sidelines of the Nasscom event, he stressed the focus would be on adding service clients.

Nandy said rather than just eyeing acquisitions domestic companies should first try and replicate the work-culture in the regions they intend to venture into. "We have 500 people in India who speak Japanese, eat Japanese food and are completely familiarised with the Japanese culture," he added.

Wipro will add at least $100 million from its Japan operations.

Earlier this year, Wipro chief Azim Premji had told Reuters that his company was looking to buy IT services firms, especially in Germany, this year. This he said in an interview on the sidelines of the World Economic Forum in Davos. This was part of global acquisition plan searching for firms that generate revenues of up to $200 million.

For the quarter ended December 31, 2006, Wipro reported 41 per cent growth in net profit at Rs 765 crore compared with the previous corresponding period. The top line rose 45 per cent to touch Rs 3,979 crore on good volume growth.

Wipro Technologies, which brings in 72 per cent of the group's revenues, reported a less-than-industry average growth of 35 per cent touching Rs 2,875 crore, ahead of its guidance of Rs 2,835 crore (Infosys and TCS have posted 40 per cent growth in global IT outsourcing business).

The company added 37 new clients during the December quarter. It also added around 5,000 employees during the quarter taking the total headcount to a little over 66,000.