Wipro Infotech acquires 3D Networks

Our Corporate Bureau
26 October 2006

Wipro Infotech, the India, Middle East and Asia Pacific IT business unit of Wipro Ltd, one of the "big three" Indian IT companies, has signed an agreement to acquire the India, Middle East and SAARC operations of 3D Networks and Planet PSG in an all cash deal.

The transaction amount includes an upfront cash payment of approximately $23 million (approximately Rs105 crore) on closure of the transaction and additional performance-linked payments based on achieving agreed financial targets over a two year period.

3D Networks, a platinum partner of Nortel Networks, provides business communication solutions that include consulting, voice, data and converged solutions, and managed services. The company''s specialised solutions are deployed in ITeS / IT, telecom, banking and finance, government and service verticals.

In India, 3D Networks has a dominant presence in providing business communication solutions to ITeS / IT segments and has around 270 employees serving several marquee customers. During FY 2005-06, it had revenues of approximately $36 million (approximately Rs 163 crore), a growth of 39 per cent YoY. It commenced India operations in 2001.

Planet PSG is the sole Global Nortel Technical Services partner on Periphonics platform in APAC region and provides professional services on voice and speech platforms in the region.

According to Suresh Vaswani, president, Wipro Infotech and president, global IT service lines, Wipro Technologies, "India's emergence as the outsourcing hub for global majors is fuelling demand for convergence solutions. 3D Networks strong integration skills in convergence technologies, customer base and proven track record complements and enhances our existing comprehensive IT Solutions and Services. Customers will immensely benefit from our broad suite of offerings in converged space. Our acquisition strategy here was to add new practice competencies and enhance our broad suite of service and solutions portfolio".