Wipro to buy SAIC's energy tech biz for $150 m
Date: 04-04-2011Wipro Technologies is acquiring the global oil and gas information technology practice of the commercial business services business unit of SAIC (Science Applications International Corporation) for $150 million in an all-cash deal.
SAIC offers consulting, systems integration and outsourcing services to global oil players and is predominantly based out of the US. After this acquisition, Wipro's upstream revenues will go up from 5 per cent to 17.5 per cent of the oil and gas vertical. As a part of this acquisition, around 1,450 employees of SAIC, including 450 in India, will be absorbed by Wipro in North America, Europe, India and West Asia. On an annualised basis, it is expected to generate revenue of about $188 million. The acquisition is being made through Wipro's internal accruals.crackcrack