Bangalore, Karnataka, India
Wipro Technologies, the Global IT Services Division of Wipro Limited (NYSE:WIT), today announced that it has signed a definitive agreement to acquire US based Quantech Global Services LLC and the India based Quantech Global Services Ltd. in an all cash deal. The consideration includes upfront cash payment on closure of the transaction as well as earn-outs on achieving agreed financial targets over a three year period.
Quantech, a 16 year old company, is a leading provider of Computer Aided Design and Engineering services to the Fortune 500 companies, particularly in the Automotive, Aerospace and Consumer Goods Industries. Quantech undertakes design, analysis, development and program management of products right from concept to pre-production stage. It has a marquee base of clients and is a preferred offshore partner for major OEM's and Tier-1 suppliers. Quantech has over 500 employees located in India and the US. The revenue of Quantech for the year ended December 2005 was USD 12.7 Million and it was profitable.
Wipro gains over 500 domain specialists through this acquisition, strengthening its ability to provide proven competence in Mechanical Engineering Design and Analysis services.
Dr. A L Rao, Chief Operating Officer of Wipro Technologies said "Our customers are increasingly looking at us to provide them complete Product Engineering services. Quantech's key strength in Mechanical Design services complements Wipro's core strength of Embedded Software and System Design capabilities and helps us strengthen our position as an Original Design Engineering (ODE) solutions provider. This acquisition strengthens our offering and enables us to be a more strategic partner to our customers".
"This is a win-win partnership where our clients will benefit from Wipro's broad suite of capabilities and proven global services delivery. We are excited about expanding Quantech's offerings in engineering services into Wipro's customer base. Coupled with Wipro's leadership in Product Engineering solutions in the embedded and telecom domain, we are confident that the new combined entity is well positioned to be the leader in the Mechanical Design and Analysis space" said Dr. Mukesh Gandhi, Chief Executive of Quantech.
Mr. Sudip Nandy, Chief Strategy Officer, Wipro Technologies commented "The acquisition is another 'Pearl' added to the "String" in keeping with our articulated strategy and is an important step in our journey to offer a complete portfolio of Engineering Design services. The system expertise that Quantech has built both, in USA as well as offshore in India will enable us to attain a leadership position in the Automotive and the Aerospace sectors."
The entire transaction is expected to be closed during the next one month. The closing of the transaction is subject to customary closing conditions and regulatory approvals.
For details about Wipro Limited & forward-looking and cautionary statements please see link below
http://www.wipro.com/news/about_wipro.htm
Jatin Dalal, Wipro Technologies, +91(080) 25056143 Jatin.dalal@wipro.com
Sanjeeth Boloor (India), Wipro Technologies, +91 9845296767 sanjeeth.boloor@wipro.com
Source: WIPRO (Business Wire India)
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