Wipro Buys U.S. Consultancy

The $20-million acquisition of cMango helps the Indian software giant expand in infrastructure management. February 20, 2006

Less than two months after it bought Austrian firm NewLogic for $56 million, Indian software giant Wipro said Monday itâs buying California-based consulting firm cMango for $20 million, expanding its presence in the highly compebreastive field of infrastructure management.

As part of the deal, cMango, which has annual revenue of about $13 million, will now be part of Wiproâs Technology Infrastructure Services group. Indian companies are battling it out with global giants like IBM and Accenture for business in infrastructure management.

ãThis acquisition is a significant milestone in our strategy towards creating a strong value proposition in emerging areas in a growth business like Technology Infrastructure Services,ä said Sudip Nandy, Wiproâs chief strategy officer. ãWe see significant value from the cMango team through their potent consulting skills, breadth of service portfolio, and domain depth.ä

ÎWe see significant value from the cMango team through their potent consulting skills, breadth of service portfolio, and domain depth.â

öSudip Nandy,

Wipro

cMango has several offices in the United States and a delivery center in Pune, a small city located close to Mumbai, in Indiaâs western state of Maharashtra.

The acquisition is in line with Wiproâs strategy to invest in areas where it can establish leadership through a differentiated service line and domain knowledge. Wipro is a leader among offshore infrastructure management services players.

It has a track record of rapid growth in its technology infrastructure services business. The unit grew 45 percent last quarter compared to the same period the previous year, and 16 percent compared to the previous quarter.

Wipro has a history of acquiring consultancies. In 2003, it bought AMSâs energy practice for $25 million followed by consultancy NerveWire for $18.7 million. Wipro also bought business process outsourcing company Spectramind in India; GEMS IT, the IT business of GE Medical Systems; and Ericsson's R&D labs at Bangalore, Hyderabad, and New Delhi.

Wipro has spent about $200 million on acquisitions so far.

Through the cMango acquisition, Wipro Technologies adds a 120-member team and deep domain expertise in business services management, which ãenables IT to deliver faster, more comprehensive and consistent business services, while increasing revenue opportunities and reducing service cost and business risk,ä said Suresh Vaswani, president of Wiproâs Global IT Service Lines.