Wipro buys Swedish firm for $31-m

BANGALORE: Wipro today announced that it had signed an agreement to acquire 100 per cent equity of Hydrauto Group AB for a consideration of $31 million in an all cash deal.

Anurag Behar, managing director, Wipro Infrastructure Engineering, said, “This acquisition gives WIN a unique Asia-Europe footprint, a customer base built over the past few decades and deep complementary engineering skills. Being together will have a multiplier effect on competitiveness.”

Olov Larsson, CEO of Hydrauto, said, “The Hydrauto team looks forward to becoming a part of the Wipro family. We think that Wipro is a perfect fit, being leaders in Asia and having an established presence in the Asia – Pacific region.

Subject to customary closing conditions and regulatory approvals, the acquisition to be completed by Q3 of financial year 2006-07.

Wipro Infrastructure Engineering, a precision engineered Hydraulic components and solutions provider in India. WIN is a tier-one supplier to OEMs of construction and earth moving machinery, material handling equipment, heavy and medium commercial vehicles amongst other industries in India and rest of Asia. For the year ended 31 March 2006, its revenues were $57 million.

Sweden-based Hydrauto is a provider of Hydraulic components and solutions in Europe. For the year ended 31 December 2005, its revenues were $ 112 million. It is a profitable entity with positive operating cash-flows.

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