Wipro to acquire two more firms

MUMBAI: Wipro today informed the BSE that it would acquire mPower Inc, a Princeton,New Jersey-based company with a development center in Chennai, and MPACT Technology Services, based in Chennai, for an all-cash consideration of $28 million.

Wipro's acquisition of these two companies come close on the heels of its buying Austrian firm NewLogic in an all-cash deal worth $56 million.

mPower is a niche company focused on payment space, has a total annualised revenue of

around $18 million and an annualised EBIT of around $4.6 million.

"Wipro Technologies has also entered into a strategic engagement with MasterCard International by acquiring 100% stake in MPACT, a joint venture between MasterCard and mPower," the Wipro release added.

"As a part of the agreement, Wipro Technologies will provide MasterCard and other clients in the payment space with a wide range of services that could include application development and maintenance, infrastructure services, package implementation, BPO and testing," the release said.

Sriram Srinivasan, vice president (banking solutions) of Wipro Technologies, said: "The payments industry is an area where we expect to see rapid growth in the near future, and this acquisition strengthens our capability in the payments arena. 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 including MasterCard."