Wipro to sell EcoEnergy business division to UTC's Indian subsidiary
01 Dec 2016
IT major Wipro Ltd yesterday struck a deal to sell its EcoEnergy business division to the Indian unit of US-based aerospace and defence contractor United Technologies Corporation (UTC), for $70 million (Rs480 crore).
UTC is carrying out the acquisition through its New Delhi-based indirect subsidiary Chubb Alba Control Systems Ltd.
The sale is expected to close by 2017, subject to regulatory approvals and customary closing conditions.
''Since the business carried out by the EcoEnergy division is not core and strategic to the overall IT business, it has been decided to divest the business,'' Wipro said in a filing to BSE.
''Since this is a sale of business division, there will be no consequent change in shareholding pattern of the company,'' Wipro added.
The said division, which has a net worth of Rs15.6 crore, had FY2015-16 revenue of Rs67.64 crore.
Chubb Alba provides products and services to the building systems and aerospace industries, worldwide.
UTC's Climate, Controls & Security provides energy management services, including heating, ventilating, air-conditioning and refrigeration systems for commercial customers in North America, Europe and Asia.
"We believe EcoEnergy's energy management platform and services will enable us to develop its remote monitoring and building analytics capabilities and bring enhanced services and solutions to our global customer base," said Ross Shuster, president, UTC Climate, Controls & Security.