Wipro to see InfoSERVER contribution in business from Q1

Wipro aims to strengthen its business in Latin America by this firm's acquisition

Wipro said its recent acquisition InfoSERVER, a Brazilian technology service firm, would start contributing to the company business from the first quarter of this financial year (FY).

"We would like to inform that the acquisition of InfoSERVER S. A. has been completed on April 10. The impact of this acquisition is expected to reflect in the financials of the company for the quarter ending June 30," said the company in a BSE filing on Tuesday.

Wipro, India's third-largest IT (information technology) services firm, aims to strengthen its business in Latin America by acquiring this firm. With a strong presence in the Brazilian market, InfoSERVER provides custom application development and software deployment services.

The $8.7 million (Rs 58 crore) worth acquisition deal has been closed in less than three months ever since signing of an agreement.

The Bengaluru-headquartered software major believes this deal will help it expand presence particularly in Brazil and the entire Latin American region as two-decade old InfoSERVER caters to some of the largest Brazilian banks.

"This acquisition closely aligns with Wipro's vision to localise, expand its presence and become a significant partner of choice in the Latin America market and an end-to-end IT services provider that brings global expertise while operating as a local company," said Wipro in a statement issued on the agreement.

Wipro is bullish about the prospects from banking and financial services segment in the Latin American market and currently operates in Argentina, Brazil, Chile, Colombia and Mexico.

The company has been aggressive in building capabilities in digital technologies and adding specialised workforce through acquisitions compared with peers such as Infosys, TCS. Wipro's biggest acquisition last year was Appirio for $500 million to boost cloud-based service offerings.

Chief Strategy Officer Rishad Premji recently said "bold steps" like acquiring new firms would help Wipro offset challenges due to digital transformation and decline in traditional technology services business, even if they pose initial hiccups in business growth.