The Hindu : Wipro to accelerate growth in BFSI vertical through acquisition

Online edition of India's National Newspaper
Saturday, Apr 26, 2003

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Wipro to accelerate growth in BFSI vertical through acquisition

By Our Staff Reporter

BANGALORE APRIL 25. The NYSE-listed IT behemoth, Wipro's recent announcement to acquire the Massachussets-based NerveWire Inc will help the Indian company accelerate its growth in the BFSI (banking, finance, insurance) vertical.

"Over the last three years, we have shown a consistent increase (in revenue contribution) from the enterprise verticals such as manufacturing, retail and BFSI sectors.

This acquisition will help accelerate growth in the BFSI vertical,'' Sangita Singh, Chief Marketing Officer, Wipro Technologies, told The Hindu.

The all-cash deal valued at about $18.7 million, subject to adjustments, would be completed in the quarter-ended June 2003. Over 90 domain experts and IT consultants along with 40 client relationships and 20 active engagements including Merrill Lynch and Lehmann Brothers are the gains brought about by the acquisition of NerveWire Inc.

This announcement comes close on the heels of Wipro Chairman, Azim.H.Premji's remark "we are prudentially evaluating acquisitions on an ongoing basis,'' made earlier during the announcement of the company's fourth quarter financial results for 2002-03.

Through the NerveWire acquisition, Wipro has tried to address a challenge faced by the Indian IT industry, "how do you offer domain expertise with IT consulting? NerveWire was chosen because of its strategic fit to Wipro and the domain expertise it brings along (in the BFSI sector),'' Ms. Singh said.

With the acquisition, Wipro Tech would focus on the securities vertical for the BFSI segment.

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