Wipro buys retail specialist

Giant outsourcer makes another niche acquisition

Indian outsourcer Wipro has signed an agreement to acquire Enabler Informatica, a Portuguese services company, to strengthen its offerings to customers in the retail industry.

Wipro will acquire Enabler for an up-front payment of about €41 million (NZ$83.8 million), as well as additional payments tied to reaching certain financial targets over a two-year period. The transaction is expected to close this month.

Enabler was set up in 1997 as a spin-off of the IT department of Modelo Continente, a Portuguese retailer. The company, with revenue of €30 million last year, has 300 employees and delivery centres in Portugal and Brazil.

The acquisition boosts Wipro’s IT services business for customers in the retail industry, says Sudip Banerjee, president for enterprise solutions in the Wipro technologies division of Wipro. About US$200 million (NZ$318 million) of Wipro’s revenue in its fiscal year ended March 31 came from services to customers in the retail business, he says.

Besides bringing domain and consulting expertise to the retail sector, the acquisition will also give Wipro access to Enabler’s customers, Banerjee says.

Sudip Nandy, chief strategy officer at Wipro Technologies, says, “We will also be extending our footprint into Portugal and Brazil.” The company plans to expand the delivery centres in these countries in line with its strategy to have delivery centres in multiple locations.

In the past six months, Wipro has made five small acquisitions. The company’s strategy is not to grow through large acquisitions, but to buy companies with specialised knowledge in the niches they operate in, Nandy says.

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