Indian Wipro is going to buy an american company

[BJP*]

2nd UPDATE:India's Wipro Agrees To Buy SAIC's IT Unit For $150M ​

BANGALORE (Dow Jones)--Wipro Technologies, the global outsourcing unit of India's Wipro Ltd. (507685.BY), has agreed to buy the oil and gas technology business of U.S.-based SAIC Inc. (SAI) in a cash deal of about $150 million, as the lumbering outsourcing major looks to light up the pace of revenue growth.

The acquisition will help Wipro further cement its leadership position in the oil and gas services segment as technology spending by clients in the sector is expected to touch $19 billion by 2013. SAIC's oil and gas information technology practise provides consulting, system integration and outsourcing services to oil companies.

The Bangalore-based company has been one of the most aggressive in building its business through acquisitions among the Indian software exporters. The NYSE and Mumbai-listed company's last major acquisition was in 2008 when it bought Citi Technology Services Ltd., a unit of Citigroup Inc. (C), for about $127 million in cash.

But it has been struggling to expand the business in recent times, mainly due to its focus on the slow-growing telecom and technology sectors. The company, India's No. 3 software exporter by sales, had restructured its businesses earlier this year into six verticals and saw a change of guard, with T.K. Kurien assuming the position of the new chief executive.

The value of the deal, funded through internal resources, is subject to adjustments, the company said in a statement Friday.

"We think the acquisition is in line with our strategy of filling in gaps, building critical mass in some of the areas where we are focused on," Suresh Senapaty, chief financial officer at Wipro Ltd., told local television channel CNBC-TV18.

The latest acquisition is expected to add $188 million in revenue on an annual basis to Wipro's overall revenue, Manish Dugar, chief financial officer at Wipro Technologies, said in a conference call with reporters.

In the fiscal year ended March 31, 2010, the company posted a total revenue of 271.24 billion rupees ($6.03 billion). During that period, the IT services business posted revenue of $4.39 billion. Wipro is expected to report its results for the financial year ending March 31 on April 27.

With the additional revenue from the SAIC unit, the share of business from the oil and gas segment in the overall revenue becomes 11%, Dugar said.

The deal will add to Wipro's earning per share as soon as it is closed, Dugar said, adding he expects the deal to be closed within the current quarter ending June 30.

However, the unit's earnings margin before interest and taxes is currently at a level below that of Wipro, Dugar said, without elaborating. He expects the margins to be on a par with that of Wipro in over two years from now.

The SAIC unit's current earnings margin before interest, taxes, depreciation and amortization stood at 13.4% on an annual basis, Dugar said.

Following the deal, SAIC's about 1,450 employees are expected to transition to Wipro across North America, Europe, India and the Middle East, the company said in a statement.

"The acquisition is very complementary," Anand Padmanabhan, senior vice president for energy, natural resources and utilities, said, adding that Wipro has a strong presence in the Europe and Asia-Pacific markets, while SAIC has a strong foothold in the U.S. and Europe.

The acquisition involves buying out SAIC's business entities in the U.K., India and Oman, Wipro's financial chief Senapaty said.

The company said the completion of the deal is subject to certain conditions and regulatory approvals.

-By Dhanya Ann Thoppil, Dow Jones Newswires; +91-9886929464; dhanya.thoppil@dowjones.com

2nd UPDATE:India's Wipro Agrees To Buy SAIC's IT Unit For $150M - WSJ.com

 

[BJP*]

this acquisition is symbolic,
from here I can imagine the power of Indian companies after 20 years... and also the question arises if the future of america is in indian hands given the recent rate of acquisitions of american companies by Indian companies??

 

[Bhim]

Indian companies are already giving direct employment to more than 60,000 people in USA.
Its a very small number, but the way they are getting aggressive the number is projected to increase 10 fold in next 5 years.

 

[Viper0011.]

Indian companies are already giving direct employment to more than 60,000 people in USA.
Its a very small number, but the way they are getting aggressive the number is projected to increase 10 fold in next 5 years.

Thanks to you guys giving us 'the Americans' some jobs. Please return the other 12 million 9 hundred and 40 thousand jobs (out of the 13 million jobs lost in the US). Which were were either sent to India or where workers were replaced by Indians in the US on technical visa or where the Americans were laid off. All during 2004 - 2010!!!

It's amazing what lobby and greed can do. A thank you to our leaders for squashing our economy and driving millions of Americans out of their homes so that the Indian companies can get those $$$ and buy American companies in return!!! Can I be more thankful for the sixty thousand jobs you gave to my country men?

 

[fallstuff]

this acquisition is symbolic,
from here I can imagine the power of Indian companies after 20 years... and also the question arises if the future of america is in indian hands given the recent rate of acquisitions of american companies by Indian companies??

You are imagining too much. Its a $150 million purchase.

The future of USA in not in India's hands.

 

[karan21]

Thanks for you guys giving us Americans jobs. Please return the other 12 million 9 hundred and 40 thousand jobs (out of the 13 million jobs lost in the US). Which were were either sent to India or where workers were replaced by Indians in the US on technical visa or where the Americans were laid off. All during 2004 - 2010!!!

It's amazing what lobby and greed can do. A thank you to our leaders for squashing our economy and driving millions of Americans out of their homes so that the Indian companies can get those $$$ and buy American companies in return!!! Can I be more thankful for the sixty thousand jobs you gave to my country men?

This is just the beginning by frnd. Till now India has only taken the services jobs while China and South Korea took all the manufacturing jobs. WIth new Indian Manufacturing policy America now has to compete with another Asian giant for manufacturing aka more jobs lost.

 

[IndoUS]

You are imagining too much. Its a $150 million purchase.

The future of USA in not in India's hands.

He meant that it opens the door to US market specially the oil sector which is a major can become a major source of revenue.

This is just the beginning by frnd. Till now India has only taken the services jobs while China and South Korea took all the manufacturing jobs. WIth new Indian Manufacturing policy America now has to compete with another Asian giant for manufacturing aka more jobs lost.

True to some degree, the main problem will be the Union groups and the dirty politics which often hold such ideas hostage.

 

[Sashan]

Nothing to be proud of - Indian IT companies are one of the worst pay masters and even Indians in US hate to work for these companies. These companies pay 1/2 of what a decent US company would pay and bring down the standard of living of an IT professional.

Indian IT companies among 10 worst paymasters in world: Study - Economic Times

 

[karan21]

He meant that it opens the door to US market specially the oil sector which is a major can become a major source of revenue.



True to some degree, the main problem will be the Union groups and the dirty politics which often hold such ideas hostage.

I don't think politics has to do a lot here. India has now opened up its manufacturing sector and companies don't have conditions to meet for the govt. They can invest 500 mill or 5 bill $ govt has no control over prices or the quantity or quality they offer.

This is not telecom but manufacturing. In telecom govt controls the prices and then investment and India has suffered a total loss of over 540000 crore since 1994(the first telecom policy). But manufacturing is different.

Unions can be a problem but most foreign companies come from democratic countries and they have unions in their own country too. Indian companies have learnt to deal with them.

 

[BJP*]

You are imagining too much. Its a $150 million purchase.

The future of USA in not in India's hands.

Wipro to remain in focus on acquisition​

December 9, 2012:

The stock of Wipro will react to its acquisition plans of Singapore-based FMCG company L.D. Waxsons Group for Rs 785 crore. This is the first acquisition after Wipro last month restructured its business divisions to hive off non-IT businesses into a separate unlisted entity called Wipro Enterprises. The company said this transaction is expected to be closed in the next 60 days. It will be interesting to know how the shareholders will react to the news, as the company had said that there were no plans to list Wipro Enterprises. As per the restructuring scheme, public shareholders can opt for one equity share with a face value of Rs 10 in Wipro Enterprises Ltd for every five equity shares with face value of Rs 2 each in Wipro Ltd. They could also choose to receive one 7 per cent redeemable preference share in Wipro Enterprises, with face value of Rs 50 for every five equity shares of Wipro Ltd that they hold.
Business Line : Markets / Stock Markets : Wipro to remain in focus on acquisition

 

[JayAtl]

Thanks for you guys giving us Americans jobs. Please return the other 12 million 9 hundred and 40 thousand jobs (out of the 13 million jobs lost in the US). Which were were either sent to India or where workers were replaced by Indians in the US on technical visa or where the Americans were laid off. All during 2004 - 2010!!!

It's amazing what lobby and greed can do. A thank you to our leaders for squashing our economy and driving millions of Americans out of their homes so that the Indian companies can get those $$$ and buy American companies in return!!! Can I be more thankful for the sixty thousand jobs you gave to my country men?

India creates more jobs for the US than the other way around. You should be thanking your high school teacher who managed to pass you to the next grade without checking your grades

This is just the beginning by frnd. Till now India has only taken the services jobs while China and South Korea took all the manufacturing jobs. WIth new Indian Manufacturing policy America now has to compete with another Asian giant for manufacturing aka more jobs lost.

Honestly though- $150 million is nothing to brag about let alone worthy of world affairs.

 

[fallstuff]

Wipro to remain in focus on acquisition​

December 9, 2012:

The stock of Wipro will react to its acquisition plans of Singapore-based FMCG company L.D. Waxsons Group for Rs 785 crore. This is the first acquisition after Wipro last month restructured its business divisions to hive off non-IT businesses into a separate unlisted entity called Wipro Enterprises. The company said this transaction is expected to be closed in the next 60 days. It will be interesting to know how the shareholders will react to the news, as the company had said that there were no plans to list Wipro Enterprises. As per the restructuring scheme, public shareholders can opt for one equity share with a face value of Rs 10 in Wipro Enterprises Ltd for every five equity shares with face value of Rs 2 each in Wipro Ltd. They could also choose to receive one 7 per cent redeemable preference share in Wipro Enterprises, with face value of Rs 50 for every five equity shares of Wipro Ltd that they hold.
Business Line : Markets / Stock Markets : Wipro to remain in focus on acquisition

I don't understand the point of this post.

$150 million purchase in the oil industry is not significant at all in USA, such may not be the case in India.

Oil Industry is very capital intensive with high labor cost which in turn works as a barrier to entry for smaller size companies. The EPA can be a nightmare if you are not well funded and connected.

 

[BJP*]

I don't understand the point of this post.

$150 million purchase in the oil industry is not significant at all in USA, such may not be the case in India.

Oil Industry is very capital intensive with high labor cost which in turn works as a barrier to entry for smaller size companies. The EPA can be a nightmare if you are not well funded and connected.

Look at the date of OP and my last post is from yesterdays news. The point is the stature of Indian companies is growing around the world. For you this may be very small deal, but the indications are very big. If US does not wake up now, it may not remain top economy say in next 30 years.

 

[neehar]

Thanks for you guys giving us Americans jobs. Please return the other 12 million 9 hundred and 40 thousand jobs (out of the 13 million jobs lost in the US). Which were were either sent to India or where workers were replaced by Indians in the US on technical visa or where the Americans were laid off. All during 2004 - 2010!!!

It's amazing what lobby and greed can do. A thank you to our leaders for squashing our economy and driving millions of Americans out of their homes so that the Indian companies can get those $$$ and buy American companies in return!!! Can I be more thankful for the sixty thousand jobs you gave to my country men?

thats competetion my friend...as ur president said...

 

[Viper0011.]

India creates more jobs for the US than the other way around. You should be thanking your high school teacher who managed to pass you to the next grade without checking your grade

I SOOO expected the false sense of smartness. Bro, I have employees like you and your brethren. And my high school passed me with fine scholarships that then sent me to fine schools and then I became a contributor to my country's economy. I didn't come with false degrees from India, or on false documents where Ram is hired and Sham shows up to work. Nor did I cheat in my exams. Whoever thinks Indians are ALL smart needs some serious medication. Out of 1 Billion, I'd guess that the 10% would be smart right (that's 100 million people) and those are the ones who the United States brings to its country for CHEAP LABOR.
Now let's take another analysis. US's population is 330 million. Out of which, 10% of smart people will be......33 million? Damn, shame on you guys. We've ruled the world since the 1900's with ONLY 20 - 33 million smart people (comparing population sample decades ago till what it is till date). So....you have 999 MILLION smart people per your population size and until 15 years ago (before the Americans brought you here), you guys didn't have a clue as to what life would be in the future had IT not kicked off???? I hope you see the comparison and never bring this up again. Because it is actually embarrassing. Always be thankful for what you were given by the land of the free and the home of the brave!!! You are what you are today because of the jobs my countrymen lost and were given to you for cheap labor!