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ACQUISITION / mPower, Mpact

Wipro adds two more to its big kitty

Bangalore, dhns:

In line with its strategy to invest in niche areas where it can establish leadership through superior domain knowledge and operational excellence, Wipro Limited, on Thursday, announced two acquisitions.

In a press release it said that it has signed a definitive agreement to acquire mPower Inc, a Princeton, New Jersey, US headquartered company with a development center in Chennai and Mpact Technology Services, based in Chennai, for an all cash consideration of $28 million.

Incidentally, Wipro early this week acquired the Austrian company NewLogic for US$56 million.

MasterCard tie-up

mPower, which is a niche company focused on payment space, has total annualised revenues of around $18 million and an annualized EBIT of around $4.6 million.

Wipro Technologies also entered into a strategic engagement with MasterCard International, by acquiring 100 per cent stake in Mpact, a joint venture of MasterCard and mPower.

The acquisition will be part of Wipro Technologies — Global IT services business of Wipro Limited.

300 on board

Through this acquisition, Wipro Technologies adds on a 300 member strong team and deep domain expertise in the payment space which will enable it to expand its addressable market in the Financial Solutions business. As a part of this agreement, Wipro will provide MasterCard and other clients in the payment space with a wide range of services that could include Application Development and Maintenance, Infrastructure Services, Package Implementation, BPO and Testing. Wipro has a track record of rapid growth in its financial services business, and expects this acquisition to help scale growth in this vertical.