Wipro, India's third largest software services exporter, said on Wednesday that it will be buying Viteos Group, a BPaaS provider for the Alternative Investment Management Industry, for $130 million.
The news of the acquisition did not impact Wipro's share price, with the stock trading with a modest gain of 0.13% at Rs 556.40 on the BSE at around 1.35 pm.
The Sensex was trading at 25,844, up 0.99%.
New Jersey-based Viteos has about 400 employees and specialises in shadow-accounting services, besides providing customised outsourcing activities across all asset classes, Wipro said in a statement on Wednesday.
Brokergage Angel Broking said that Viteos had revenues of $26.5 million in 2014-15, translating into a market cap of 4.9 times its FY2015 earnings.
It added that Viteos Group's revenues will fully reflect in Wipro's revenues in FY17 and contribute 0.3% to its sales for 2016-17.
Wipro said that the acquisition will strengthen its capital markets domain.
"The IT services industry is moving to an 'as-a-Service' model, and the future of BPS is going to be BPaaS (Business Process as-a-Service). Viteos will further our strategy in the Capital markets domain," said Shaji Farooq, President & Chief Executive of Finance Solutions at Wipro.
Viteos Group founder and CEO Shankar Iyer said the acquisition will enable the company to grow further.
"Our search for a global partner who gives Viteos exceptional market reach in expanding our presence while preserving the entrepreneurial characteristics of Viteos culminated with this acquisition by Wipro. It gives me immense pleasure in continuing to be part of a growth story that can reach even greater heights," he said.
Viteos Group comprises Viteos Fund Services LLC, Viteos Capital Market Services Limited and Viteos Fund Services Limited and has offices in the US and India.
The acquisition is subject to customary closing conditions and regulatory approvals and will be completed in the quarter ending 31 March, 2016, Wipro added in its statement.
