Wipro goes shopping again; acquires cMango Inc
21 Feb 2006
Wipro has signed a definitive agreement to acquire cMango, a US-based technology infrastructure consulting firm, in an all-cash deal. Wipro would pay $20 million on conclusion of the deal besides future payments based on achieving agreed financial targets.
The acquisition is subject to regulatory approvals and Wipro expects to conclude the transaction by April 2006.
Based in California, cMango is focused on Business Service Management (BSM) solutions. Its services include business transformation, ITIL consulting, service management solution architecture, implementation, training and support services.
cMango is a BSM certified partner of BMC Software, an industry leader in the BSM segment. The company is also a BMC value added reseller, systems integrator and technical support and training partner for BMC. cMango is also a BMC managed services partner.
cMango has a development centre in Pune which employs around 120 people with marketing offices in the UK and Singapore besides multiple locations in the US. The company has annualised revenues of around $13 million.
After the acquisition, cMango would be a part of the Technology Infrastructure Service division of Wipro Technologies. This is one of the fastest growing segments for Wipro, with growth rates of 45 per cent year on year and 16 per cent sequential during the last reporting quarter ended December 2005.
For the quarter ended December 2005, Wipro had reported a consolidated net profit of Rs505.1 crore or Rs3.58 per share as compared to Rs453 crore or Rs3.23 per share for the September quarter. Total revenues increased to Rs2,503.7 crore from Rs2,293.5 crore.
Wipro closed at Rs511.7 (up 2.56 per cent) on the BSE yesterday.
