Wipro buys Citi unit - Biggest Tech News Of 2008

[VelMurugan]

Wipro buys Citi unit

India's third-ranked outsourcer, Wipro Technologies acquired Citi Technology Services Ltd, India-based captive IT unit of Citigroup Inc, for $127 million in cash and signed a six-year service agreement worth at least $500 million.

As part of the deal, Wipro and Citi will sign a master services agreement for delivery of technology infrastructure services and application development and maintenance (ADM) services for six years. Under this the banking giant will source services worth at least half a billion dollar from the Indian vendor.

Citi Technology Services is based in Mumbai and Chennai and employs around 1,650 staff servicing the bank's offices in over 32 countries. Apart from its core focus area of technology infrastructure services, the business also specialises on ADM for cards, capital markets and corporate banking.

Citi Technology Services is expected to report revenue of $80 million in 2008, up from $53 million last year. The deal done through Wipro Technologies, the information technology arm of the New York-listed Wipro, is expected to close in March 2009.

Source : IndiaTimes