BANGALORE: Wipro Ltd has signed a definitive agreement to acquire cMango Inc., a Sunnyvale, California -headquartered company in an all cash deal.

Wipro said in a statement here that cMango has multiple offices in the US as well as offices in the UK, Singapore and a delivery center in Pune.

Under the terms of the agreement, the consideration to acquire 100 percent stake in privately held cMango includes cash payment of $20 million on closure of the transaction as well as earn-outs based on achieving targeted financial metrics over a two-year period.

The acquisition is in line with Wipro's strategy to invest in areas where it can establish leadership through differentiated service lines and domain knowledge.

The closing of the transaction is subject to customary closing conditions and regulatory approvals, which are expected to be concluded by April 2006.

cMango, focused on Business Service Management (BSM) Solutions, has annualized revenue of around $13 million.

It creates business solutions for customers using the right combination of people, process and technology. cMango's services comprise business transformation, ITIL consulting, service management solution architecture, implementation, training and support services.

cMango will be part of the Technology Infrastructure Services (TIS) Service-line of Wipro Technologies, the Global IT division of Wipro Ltd.

cMango leverages the industry's top BSM solutions from BMC Software Inc. such as BMC Remedy, BMC Marimba and other complementary technologies.

In addition to being a BSM Certified Partner, cMango is a BMC value added reseller, systems integrator and technical support and training partner for BMC.

Commenting on the transaction, Pravin Jain, CEO, cMango said, “This partnership brings together the specialized expertise of cMango in BMC's BSM solutions and Wipro's wide range of services and extended global reach. We are confident that this winning combination can significantly expand the market addressed and provide superior customer solutions, emerging as the leader in the BSM space.”

Wipro has a track record of rapid growth in its Technology Infrastructure Services business (last quarter growth rate was 45% Year on Year and 16% sequential), and expects this acquisition to help scale growth in this area.

Commenting on the acquisition, Sudip Nandy, Wipro's chief strategy officer said, “This acquisition is a significant milestone in our strategy towards creating a strong value proposition in emerging areas in a growth business like Technology Infrastructure Services. We see significant value from the cMango team through their potent consulting skills, breadth of service portfolio and domain depth.”