Wipro Technologies to acquire Austrian firm NewLogic
Indiaâ€™s leading IT firm Wipro Technologies has announced plans to acquire an Austrian firm NewLogic. They have signed on a definitive agreement for this and this all cash deal would cost them around $56 million. NewLogic specializes in chip-design and the Bangalore based Wipro would be acquiring 100 percent of the shares of the company.
Wipro officials said in a statement that the company would be paying 21 million euros upfront for their new acquisition and the remaining amount would be linked to milestones subject to undisclosed performance targets. These would be paid over the next three years. The basic transaction is expected to be closed within a month.
Wipro’s chief strategy officer, Sudip Nandy added to these details: “This acquisition is a significant milestone in our strategy towards creating a strong footprint in Europe and enhancing our local delivery capability. While NewLogic has its own royalties based on patents, Wipro can provide complimentary services from India to global customers.â€ NewLogic brings to them expertise of around 120 experts, 25 patent filings and 20 customers.