Wipro has reached an agreement to acquire Citi Technology Services Ltd., the India-based captive provider of information technology services and solutions to Citi entities worldwide, for an all cash consideration of approximately $127 million. Both will sign Master Services Agreement for the delivery of Technology Infrastructure Services (TIS) and Application Development and Maintenance (ADM) services for a period of six years. The agreement provides for the delivery of at least $500 million in service revenues over the period of the contract.
Based in Mumbai and Chennai, Citi Technology Services provides IT services to Citi and its affiliates around the world. It has approximately 1,650 employees servicing Citi businesses in more than 32 countries. Citi Technology Services' revenues are expected to be approximately $80 million in CY2008. Apart from strong competencies in TIS, Citi Technology Services has expertise in ADM for Cards, Capital Markets and Corporate Banking.