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Wipro buys NewLogic for $57.59 M
By Sources
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Tuesday, 20 December 2005, 20:30 IST |
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BANGALORE: Wipro Technologies has acquired an Austrian chip design firm NewLogic for $57.59 million in an all cash deal. The acquisition would strengthen Wipro's presence in Bluetooth technology and the wireless local area network (WLAN) space.
Announcing this, Wipros product engineering services President, Ramesh Emani said, The company would pay Euro 21 million upfront and the rest over a three-year period on achieving targeted financial conditions. The transaction is likely to be closed in the next one month.
NewLogic, with estimated revenues of euro 14 million for 2005, brings Wipro a headcount of 120 engineers and a 20-strong customer base that includes Philips, Infineon and Agere among others. The company owns intellectual property (IP) cores for complex wireless applications such as Bluetooth and WLAN.
Wipros Chief Strategy Officer, Sudip Nandy said, The acquisition would help the company to create a strong footprint in Europe and enhance the local delivery capability. Wipro was on the lookout for further buy-outs and would be announcing this over the next few quarters.
Wipro would combine its global semiconductor IP portfolio, the analogue/mixed signal services and the European system-on-chip (SoC) design services with NewLogic and create a new business unit under Product Engineering Solutions (PES) Group, Emani said.
At present, the PES accounts for 32 percent of Wipro Technologies' revenues. Wipro has some 1,200 people in the semiconductor and VLSI design space, which accounts for 3 percent of Wipro Technologies' revenues. The addition of 120 people from NewLogic would enhance Wipro's semiconductor team to around 1,320.
With NewLogic's buyout, Wipro is aiming to become number one in communication standards based semiconductor IP category in the world in three years, he added.