Deal of the Month India’s leading technology company, Wipro Ltd., through its IT services business, Wipro Technologies, has agreed to acquire Citi Technology Services Ltd. (CTSL), in an all-cash deal, for $127 million (Rs 635 crore). Under the Master Services Agreement, the deal guarantees revenues of at least $500 million to Wipro over six years. The deal is expected to close by March 2009.
In times where ITES companies are scouting for sources of steady revenue streams, the deal comes as a welcome step for Wipro. The deal helps Wipro beef-up its presence in banking and financial services, specifically in risk and compliance related services. As far as Citigroup is concerned, this transaction is in continuation to its strategy of exiting non-core businesses.