Continuing with its ‘string of pearls’ acquisition strategy, Wipro has made one of its largest overseas buys by taking over the Portugal-based retail solutions provider Enabler for $53.3m (Rs 240 crore). This is Wirpo’s fifth acquisition over the past six months.
The consideration for Enabler includes an upfront cash payment ($53.3m) — which includes actual cash and cash equivalent on the balance sheet — on closure of the transaction as well as earnouts on achieving agreed financial targets over a two-year period. The revenues for Wipro from this acquisition will start accruing from July ’06.
The acquisition will not only strengthen Wipro’s retail services division, but also give it a toehold in the Latin American market. Enabler with 310 people has two development centres — one each in Portugal and Brazil.
The retail division of Wipro Technologies has revenues of $200m (Rs 900 crore), 2,500 people and contributes around 13% to Wipro’s overall revenues. Addressing mediapersons, Sudip Banerjee, president, enterprise solutions, Wipro Technologies, said that the acquisition gives it access to a development centre in Brazil, which it is keen on expanding, and facilitates a foray into the European retail market.
Enabler, which started in 1997, posted revenues of $39m (Rs 175.5 crore) in ’05 and has a current customer base of 15, including the likes of Tesco, Sonae, Espirit.
Its expertise lies in the integration of Oracle retail solutions and consulting services. Wipro has continued with a flurry of acquisitions over the past six months. The first one was of Austrian firm NewLogic ($56m) in December ’05 with the latter buys — mPower, cMango and more recently Quantech — being smaller in size.
According to Enabler CEO Antonio Murta, the company’s customer base comprises entities which are very large, with just one of them being a less-than-$1bn company. However, that company’s gross margins stand at 15% of its revenues.
Wipro Technologies’ chief strategy officer Sudip Nandy said its acquisition strategy is guided by three factors: strengthening of domain expertise, adding new service lines and increasing the geographical footprint.
Wipro has continued with a flurry of acquisitions over the past six months. The first one was of Austrian firm NewLogic ($56m) in December ’05 with the latter buys — mPower, cMango and more recently Quantech — being smaller in size.
The consideration for Enabler includes an upfront cash payment ($53.3m) — which includes actual cash and cash equivalent on the balance sheet — on closure of the transaction as well as earnouts on achieving agreed financial targets over a two-year period. The revenues for Wipro from this acquisition will start accruing from July ’06.
The acquisition will not only strengthen Wipro’s retail services division, but also give it a toehold in the Latin American market. Enabler with 310 people has two development centres — one each in Portugal and Brazil.
The retail division of Wipro Technologies has revenues of $200m (Rs 900 crore), 2,500 people and contributes around 13% to Wipro’s overall revenues. Addressing mediapersons, Sudip Banerjee, president, enterprise solutions, Wipro Technologies, said that the acquisition gives it access to a development centre in Brazil, which it is keen on expanding, and facilitates a foray into the European retail market.
Enabler, which started in 1997, posted revenues of $39m (Rs 175.5 crore) in ’05 and has a current customer base of 15, including the likes of Tesco, Sonae, Espirit.
Its expertise lies in the integration of Oracle retail solutions and consulting services. Wipro has continued with a flurry of acquisitions over the past six months. The first one was of Austrian firm NewLogic ($56m) in December ’05 with the latter buys — mPower, cMango and more recently Quantech — being smaller in size.
According to Enabler CEO Antonio Murta, the company’s customer base comprises entities which are very large, with just one of them being a less-than-$1bn company. However, that company’s gross margins stand at 15% of its revenues.
Wipro Technologies’ chief strategy officer Sudip Nandy said its acquisition strategy is guided by three factors: strengthening of domain expertise, adding new service lines and increasing the geographical footprint.
Wipro has continued with a flurry of acquisitions over the past six months. The first one was of Austrian firm NewLogic ($56m) in December ’05 with the latter buys — mPower, cMango and more recently Quantech — being smaller in size.
