Contracts worth up to $1 billion expected after the acquisition
Wipro Technologies on Tuesday said it is buying the IT arm of Citigroup in
The all-cash deal to acquire Citi Technology Services (Citos) comes with a commitment by Citigroup to outsource all future infrastructure management contracts to Wipro, which will absorb some 2,000 Citos staff in Mumbai and Chennai. As part of the deal, Wipro will deliver infrastructure services and provide application development and maintenance to Citi for six years, assuring the Bangalore-based company of at least $500 million in revenues over the period. “It could be twice as much over the next few years,” said Jagdish Rao, Citi's global technology head. “As we face these challenges, there will be greater demand for moving more work to offshore locations,” he added.
ET had reported the likelihood of Wipro acquiring Citos in its edition on November 4. The online edition of this paper was the first to publish details of the acquisition on Tuesday, ahead of the official announcement. Girish S Paranjpe, joint CEO of Wipro’s IT business, said the acquisition would help the company serve its customers better in the banking sector.
Source: The Hindu Business Line
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