Wipro buys 2 firms for $28 million

Wipro has announced that it is acquiring mPower Inc, a Princeton, New Jersey, US headquartered company with a development centre in Chennai and MPACT Technology Services, based in Chennai, for an all cash consideration of $28 million.

This announcement comes just days after it announced an acquisition of an Austrian chip design firm NewLogic for $56 million.

mPower, which is a niche firm focussed on the payments space, has total annualised revenues of around $18 million and an annualised EBIT of around $4.6 million.

Wipro Technologies has also entered into a strategic engagement with MasterCard International, by acquiring 100 per cent stake in MPACT, a joint venture of MasterCard and mPower. The acquisition will be part of Wipro Technologies.

Through this acquisition, Wipro Technologies adds 300 members and deep domain expertise in the payments space enabling it to address a bigger market in the financial solutions business.

As a part of this agreement, the company will provide MasterCard and other clients in the payments space with a wide range of services.

The acquisition is in line with Wipro's strategy to invest in niche areas where it can establish leadership through superior domain knowledge and operational excellence.

The company has a track record of rapid growth in its financial services business, and expects this acquisition to help scale growth in this vertical.

Sriram Srinivasan, vice president - Banking Solutions, Wipro Technologies says, "The payments industry is an area where we expect to see rapid growth in the near future, and this acquisition strengthens our capability in the payments arena, where we work across the chain from traditional, electronic and cards payments."

Commenting on the acquisition, Sudip Nandy, Chief Strategy Officer, Wipro said, "This acquisition is a significant milestone in our strategy towards deepening our domain expertise and building a strong footprint in the payment industry. We see immediate and considerable value coming from the mPower team through their strong domain knowledge, client base, and complementary skill-sets."