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News >> Technology >>
Wipro buys mPower in all-cash deal
By agencies
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Friday, 23 December 2005, 20:30 IST
BANGALORE: Wipro Technologies has announced the acquisition of the U.S. based mPower Inc in an all-cash deal worth $28 million.
This amount includes the takeover of the Chennai-based MPACT, a joint venture of MasterCard and mPower. MasterCard, which owned a 49 percent stake in MPACT, has entered into a strategic engagement with Wipro Technologies.
mPower is a $18 million finance software services and technology consulting company. It has a development center in Chennai with 300 employees. The deal will close on January 31, 2006.
The acquisition is in line with Wipro's strategy to deepen its hold in the financial services sector. It will offer Application Development and Maintenance, Infrastructure Services, Package Implementation, BPO and Testing services to banking clients.
"We expect to see rapid growth in the payments industry in the near future. Our 360 degree integrated IT and BPO service portfolio, understanding of regulatory frameworks, and experience in improving operational efficiencies positions us as an ideal partner for payment solutions companies," said Sriram Srinivasan, Vice-President-Banking Solutions, Wipro Technologies. Only two days ago, the company took over Austrian chip design firm NewLogic.
Naru Narayanan, Chairman and CEO, mPower, said, "This partnership brings together the niche expertise of mPower in the payments space and Wipro's wide range of services and extended global reach. We are confident that this combination can expand the market addressed and provide superior customer solutions."