Wipro to Acquire Infocrossing

Wipro Ltd has announced that the Company has entered into an agreement on August 06, 2007 to acquire Infocrossing Inc and its subsidiaries. This acquisition is subject to consents and approval from statutory authorities and also subject to approval of the Shareholders of Infocrossing Inc. The Target Company is a Nasdaq Listed Company and is in Data Centre Space and IT Outsourcing.

"Wipro Technologies and Infocrossing, Inc, a US-based provider of IT infrastructure management, enterprise application and business process outsourcing services, on August 06, 2007 announced that the Companies have signed a definitive agreement for Wipro to acquire Infocrossing for $ 18.70 per share in an all cash deal that will create one of the world leaders in end-to-end IT infrastructure management solutions. The acquisition will be conducted by means of a tender offer for all of the outstanding shares of Infocrossing, followed by a merger of Infocrossing with a Wipro subsidiary. The tender offer is subject to a number of customary closing conditions, including regulatory approvals, and is expected to close by the fourth quarter of 2007.

"Wipro Technologies has identified global infrastructure services as an important driver of growth for the Company and is pleased to add Infocrossing, which provides integrated managed infrastructure services to premier global clients." said Suresh Vaswani, President, Global IT Service-lines, Wipro. "Total outsourcing Services, which include our IT infrastructure services, grew 75% in the past year proving global clients are increasingly realizing the value of these services. This acquisition of an acknowledged industry leader broadens the data center and mainframe capabilities of Wipro Technologies to uniquely position us in the remote infrastructure management space. Through Infocrossing we are deepening our presence in the United States with the addition of five data center locations and approximately nine hundred employees." Sudip Banerjee, President Enterprise Solutions of Wipro Technologies added, "With its unique Platform based solutions, Infocrossing also brings in significant expertise in Health plan & Payer Management segments. With its proven track record of processing over 175 million claims annually and providing contracted services to over 90 managed care organizations, Infocrossing will considerably enhance Wipro's ADM & BPO offerings to our Healthcare customers."

The global IT infrastructure market has been projected to be $150 billion and the global market opportunity for remote infrastructure management services has been predicted to reach $70 billion, according to industry association NASSCOM. Infocrossing's expertise in hosted and managed IT infrastructure services will enhance Wipro's current service offerings. The Company operates five state-of-the art data centers in the United States and provides a full portfolio of infrastructure management solutions, including server management, mainframe outsourcing, network management and security services. For the twelve months ended March 31, 2007, Infocrossing had revenues of $232.4 million and net income of $9.3 million.

Wipro was advised on the transaction by Citigroup and represented by the law firm of Wilson Sonsini Goodrich and Rosati, and Infocrossing was advised by Credit Suisse Securities (USA) LLC and represented by the law firm of Gibson, Dunn & Crutcher LLP."

Source : Equity Bulls

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