Wipro to acquire SAIC's oil and gas IT business for around $150 million
01 Apr 2011
Wipro Technologies, the global IT business of Wipro Limited, has agreed to acquire the global oil and gas information technology practice of Science Applications International Corporation (SAIC) of the US, for about $150 million, in cash.
The acquisition of the business, currently operated by the commercial business services arm of SAIC, will help Wipro further strengthen its position as a leading information technology provider for global oil and gas businesses, the company said in a release today.
SAIC's global oil and gas information technology unit provides consulting, system integration and outsourcing services to global oil majors in the areas of digital oil field, petro-technical data management and petroleum application services in the upstream segment.
The business currently employs approximately 1,450 professionals across North America, Europe, India and the Middle East, who are expected to transition to Wipro.
Wipro considers its energy, natural resources and utilities unit as a high-growth strategic business unit and is looking increasingly to grow newer streams of revenues by helping energy firms optimise their operational cost while also becoming environment-friendly.
"Oil & Gas companies are investing in the upstream business while looking at rationalising cost through IT. The acquisition of SAIC's global oil and gas information technology practice will strengthen Wipro's existing energy business unit in becoming a long term strategic partner in our customer's transformation journey," Anand Padmanabhan, senior vice president, energy, natural resources and utilities SBU, Wipro Technologies said, said.