Wipro calls off agreement to acquire Viteos Group

Says both parties decided to terminate the contract owing to delay in completion of closing conditions

Wipro has called off the agreement to acquire Viteos Group, a New Jersey-based back office services provider it had agreed to acquire in December last year for a consideration of $130 million (around Rs 860 crore). 

The Bengaluru-based company said the decision was taken due to inordinate delays in completion of closing conditions by both the parties (Wipro as well as the target company) exceeded the target date and expiration date. “Both the parties have decided not to proceed ahead with the acquisition,” the company said in the statement.

While announcing the deal last year, Wipro had said that Viteos, which comes with its proprietary platform would enhance its presence in the capital markets outsourcing market. Founded in 2003, Somerset-headquartered Viteos Group provides business process as a service (BPaaS) to alternative investment management companies in the US, Europe and Asia. 

 

Jatin Dalal, CFO of Wipro, said that there was no financial obligation that was committed upfront for this deal. “It was amicably decided by both the parties not to pursue it further, as both the parties could not complete the closing conditions,” he said. 

As the competition heats up in the IT outsourcing services space with clients looking for newer digital technologies, Wipro, in the recent past is going aggressive in its acquisition strategy. In February this year, the Bengaluru-based company has signed a definite agreement to acquire Florida-based healthcare technology solutions provider, HealthPlan Services, for $460 million (around Rs 3144 crore), its second largest acquisition for the IT services business. 

Dalal said it would continue with its inorganic growth strategy to supplement its organic growth.