WeP picks 76% stake in Select Technologies

BANGALORE: WeP Peripherals Limited (erstwhile Wipro ePeripherals) has acquired over 76 percent stake in Select Technologies. Under the terms of the agreement, WeP limited will acquire all of Select's networking and security solutions. Set up in 2000 as the breakaway peripherals division of Wipro Infotech, WeP's top line revenues have largely come from printers.

Over the last year it had been seeking growth in the storage, personal mobility/convenience and communications sectors. The company recently made a foray into the networking market with the launch of WeP branded routers and switches. The takeover is expected to strengthen the company's presence in this sector.

In fiscal 2001-02 WeP registered revenues of Rs 210 crore while Select recorded a turnover of Rs 12 Crore. Post the takeover, 100% of Select's revenues and the entire headcount will now register with WeP. Select however is likely to continue as a separate operational subsidiary.

"As a result of the acquisition, WeP will now be able to offer customers exceptional reliability, superior price/performance, and investment protection across an even broader line of networking solutions," says WeP Peripherals, General Manager - Finance and Business Development, Deepak A Chari.

WeP plans to leverage on Select's already established distribution network of 1000 resellers and 40 employees. "We have around 12,000 authorized resellers spread across the country. With an additional 1000 resellers from Select, we will be a stronger channel focused company," adds Deepak. However, WeP and Select Technologies currently have no plans for revamping their internal structure.

(CNS)