Wipro Seals Its Second Deal This Month, Buys Viteos for $130 Million

Wipro on Wednesday said it buying business process outsourcing provider Viteos Group for $130 million or nearly Rs 850 crore (at 66 rupees per dollar). Somerset, New Jersey-based Viteos, a leader in shadow-accounting services, employs over 400 people, Wipro said.

"Viteos licenses its proprietary platform which offers transformation and integration of post-trade operations. This platform can be leveraged to launch solutions across other segments of capital markets. These technology-based solutions will bring in non-linear and higher revenue realization," Wipro said in a statement.

Viteos provides customized processing and integrates post-trade operations across every asset class, currency, border or structure for the alternative investing management industry in the US, Europe and Asia.

"Our strategy is to invest in industry vertical platforms which will provide platform-based services to our clients in transaction/outcome-based pricing models. Viteos will further our strategy in the capital markets domain," said Shaji Farooq, president and chief executive, finance solutions, Wipro.

The acquisition will be completed in the quarter ending March 31, 2016, Wipro added.

This is Wipro's second acquisition this month. India's third largest IT services company had earlier announced the acquisition of German IT consulting firm Cellent AG for 73.5 million euros (about Rs 518 crore). (Read)

Domestic IT companies, including TCS and Infosys, have been aggressively acquiring companies to strengthen their foothold in the digital space, which is seen as the next big thing in the outsourcing space. The digital business has high margins and is the fastest-growing domain in the outsourcing industry, analysts say.

Wipro shares closed 0.15 per cent higher at Rs 556.30 as compared to 1 per cent gain in the broader Nifty.