BANGALORE: Wipro Ltd has acquired 100 percent stake in Austrian company NewLogic in an all-cash deal worth $56 million.

NewLogic is ranked number one in the Bluetooth and Wireless LAN design space.

According to NewLogic, the considerations included cash payment on closure of the transaction as well as earn outs on achieving targeted financial conditions over a three-year period. The transaction is expected to close in the next one month.

Wipro has now redesigned its European operations to include global semiconductor IP services; digital and analog mixed signal and RF design services, and European design services.

Addressing a press conference here, Ramesh Emani, president, product engineering solutions, Wipro Technologies, said, “NewLogic has 10 percent share of the fragmented design services market in Europe and with this acquisition, we can merge our competencies together.”

With the acquisition, Wipro will add on 120 engineers from NewLogic to its existing team of 1200 design services. NewLogic is a semiconductor design services company with intellectual property cores for wireless applications.

Meanwhile, Wipro informed the BSE today that Hans-Peter Metzler, CEO of NewLogic, will lead Wipro's European operations. Europe currently contributes to nine percent of the company's R&D services revenues in the embedded space.

NewLogic's customer base includes companies like Agere Systems, Infineon and Philips. Emani added that Wipro's vision is to become the number one in the communications standards based IP in the coming years.