India?s third largest software exporter, Wipro Ltd, on Monday entered into an agreement with Nasdaq-listed Infocrossing Inc to acquire the company for around $600 million (Rs 2,400 crore).
Under the agreement, Wipro will acquire Infocrossing?s 32 million outstanding shares for $18.70 a share in all-cash deal?making it one of the largest acquisitions in the Indian IT space. The acquisition will be conducted through a tender offer for all outstanding Infocrossing shares.
?We expect to offer the tender shortly. It is one of the largest acquisitions by an Indian IT company and, as of now, it is the largest acquisition by Wipro. We have paid a premium of 13% on a six-month average of Infocrossing?s share price,? Wipro CFO Suresh Senapaty said.
He said, ?Acquisition will help Wipro win large total outsourcing deals. Wipro will also take on board 900 employees of Infocrossing and it will be merged with the Wipro subsidiary in the US, Wipro Inc.
The $229-million Infocrossing has five locations in the US and had a net income of $8.5 million for the year ended December 2006. ?The entire transactions will be done through cash on the balance sheet,? Senapaty said.
Earlier on Monday, Wipro shares were down 2.64% on the BSE to close at Rs 457.85.