Wipro buys Finnish firm for euro 41 mn

Wipro Technologies, close on the heels of acquiring Portugese retail solutions provider Enabler for ¤41 million, has announced one more acquisition in Europe.

Wipro has signed an agreement to acquire Finland-based Saraware, a privately-held design and engineering services provider to telecom companies, in an all-cash deal.

The consideration of ¤25 million includes upfront cash payment and debt takeover. In addition, there are earn-outs on achieving targeted financial conditions over an 18 month period. Saraware, a 21-year-old company, had a turnover of of ¤15 million in the last calender and currently employees 200 people.

"This acquisition gives us a much needed local presence in Finland and puts us in the heart of the Nordic region. We need near-shore development centres as we take up more complex and end-to-end engagements with our customers," said Ramesh Emani, president, Product Engineering Services, Wipro.

Besides access to Saraware's design centres in Finland, the acquisition brought niche skills in development of base station controllers and mobile communication platforms.

"Combined with Wipro's existing competencies, it helps us penetrate into high growth segments like secure communications and gives us the capability to handle complete outsourcing deals in the evolving GSM, 3G and Tetra markets," Emani added.

Close to 50 per cent of global marketshare in the wireless infrastructure domain is accounted for by major players like Nokia and Erricson, in the Nordic belt.

Sudip Nandy, chief strategy officer, Wipro said over the past few months the company had added workforce in Portugal, Austria, France and Germany, through acquisitions.

"Saraware gives us a local work-force in the Nordics through a presence in Finland and this is in line with our drive to transform ourselves into a truly global company," he added. The entire transaction is expected to be closed during the next one month.