Wipro acquires mPower for $28 million
Indian software services giant Wipro seems to be in acquisition mode nowadays. Just days after the company announced plans to acquire Austrian chip design firm NewLogic for $56 million, they have now announced plans to takeover mPower in an all-cash deal for $28 million. mPower already has an Indian division working in Chennai and the deal also includes a 100 percent stake in MPACT Technology Services, which is a collaboration between MasterCard and mPower.
mPower is originally based in Princeton, New Jersey and they focus primarily on the niche electronics payment space. The company has total annualized revenues of about $18 million and the acquisition would bring to Wipro a 300-person team. They have expertise in the payment space would help Wipro gain an advantage in the software market targeted towards the financial industry.
Market experts also believe that the Indian tech giant got a good deal out of the US based company. Ashish Thadhani, an analyst with Gilford Securities said: “From an operational standpoint, this will expand Wipro’s domain expertise in the financial services vertical, which is growing at 50 percent year-over-year in eight of the last nine quarters.â€
Wipro as a result of this deal would now be providing MasterCard and other clients in the financial industry services related to application development and maintenance, infrastructure services, package implementation, back-office systems, and testing. Sudip Nandy, chief strategy officer at Wipro added: â€œThis acquisition is a significant milestone in our strategy toward deepening our domain expertise and building a strong footprint in the payment industry.â€