Wipro inks $1.1bn IT deal with ATCO; buys subsidiary for $195m

Wipro has entered into a multi- million dollar dual pact with ATCO through which India's third largest software services company will provide a complete suite of outsourcing solutions to the Canadian firm as well as acquire its IT services arm.

The Bangalore-based firm on Friday said it signed a series of Master Services Agreements with ATCO under which Wipro will acquire ATCO's IT subsidiary for an all-cash consideration of CAD 210 million ($195 million or over Rs 1,176 crore). The sale is expected to be completed in the third quarter of 2014.

Besides, Wipro has also secured a 10-year IT deal with ATCO for providing outsourcing services, which will result in annual revenues of over CAD 120 million ($112 million or over Rs 675 crore) for Wipro for the next 10-years.

Alberta-based ATCO Group is one of Canada's premier corporations. As a $16 billion enterprise with more than 9,800 employees, ATCO Group is engaged in structures and logistics, utilities, energy and technologies.

As part of the alliance, Wipro will provide outsourcing solutions, including infrastructure management and application development and maintenance, to ATCO in Canada and Australia for 10 years up to December 2024.

“The arrangement is projected to result in revenues of over CAD 120 million ($112 million or over Rs 675 crore) to Wipro annually...We have traditionally had a strong position in the Utilities space in Europe and this engagement provides momentum to our business in Canada and Australia,” Wipro Chief Executive (Energy, Natural Resources and Utilities) Anand Padmanabhan said.

In 2011, Wipro Technologies had acquired the global oil and gas IT practice of Science Applications International Corporation for an all cash deal of about $150 million.