|
INDIA
BUSINESS WORLD -
FEBRUARY 2006
THE MONTH THAT WAS WIPRO BUYS CMANGO IN $20-M DEAL
CONTINUING with its ‘string of pearls' acquisition strategy, IT major Wipro is acquiring cMango Inc, a Sunnyvale, California, US-headquartered consulting
company in an all-cash deal. Under the terms of the agreement, the consideration to acquire 100% stake in privately-held cMango includes cash payment of $20 million (Rs 90 crore) on closure of the transaction as well as earnouts, based on achieving targeted financial metrics over a two-year period.
The 120-people strong cMango, is focused on Business Service Management (BSM) Solutions, and has annualised revenue of around $13 million (Rs 58 crore). cMango has offices in the US and also in the UK and Singapore plus a delivery centre in Pune, India. cMango will be part of the Technology Infrastructure Services (TIS) Service-line of Wipro Technologies, which is the Global IT division of Wipro. The transaction is expected to be concluded by April 2006
.
Wipro chairman Azim Premji recently repeatedly said the company would acquire medium-sized firms, mainly in Europe. Late last year, it acquired NewLogic, an Austrian design firm in the semi conductor space for $54 million (Rs 243 crore) and mPower, a payment processing company, which has a development centre in Chennai for $28-million (Rs 126 crore).
cMango's services comprise business transformation, ITIL consulting, service management solution architecture,implementation, training and support services. cMango leverages the BSM solutions from BMC Software Inc.
Commenting on the transaction, Pravin Jain, CEO, cMango said, “The cMango team is delighted to join the Wipro family. This partnership brings together the specialised expertise of cMango in BMC's BSM solutions and Wipro's wide range of services and extended global reach. We are confident that this winning combination can significantly expand the market addressed and provide superior customer solutions, emerging as the leader in the BSM space.” Wipro said this acquisition was in line with its strategy to invest in areas where it can establish leadership through differentiated service lines and domain knowledge. “The acquisition furthers our relationship with BMC, the leading provider of BSM solutions, and strengthens our capability in this arena,” said Suresh Vaswani, President, Global IT Service Lines at Wipro.
|
