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Wipro acquires leading Finnish provider of wireless design services
13/06/2006
Saraware Oy’s workforce is expected to double in the near future.
On 8th June 2006, Wipro Technologies, the global IT Services arm of Wipro Limited, announced that it has signed an agreement to acquire Finland-based Saraware Oy, a leading provider of design and engineering services to telecoms companies, in an all-cash deal. According to a statement, the consideration of EUR 25 Million includes an upfront cash payment and debt takeover, and there are also earn-outs on achieving targeted financial conditions over an 18-month period. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be closed within a period of 30 days.
Quoted in an article published in the Kauppalehti newspaper on 12th June, Risto Niva, Saraware’s CEO, said that Wipro’s intention is to increase the number of people it employs in Finland by some 200 in the near future, a doubling of Saraware’s current workforce. According to Kauppalehti, the new jobs will be located in all six of the company’s Finnish operational units.
According to Wipro, close to 50% of global market share in the wireless infrastructure domain is dominated by major players in the Nordic belt. Commenting on the announcement, Ramesh Emani, President, Product Engineering Services of Wipro Technologies, said “This acquisition gives us much needed local presence in Finland and puts us in the heart of the Nordic region. We need near-shore development centres, as we take up more-complex and end-to-end engagements with our customers. In addition, this acquisition brings niche skills in development of base station controllers and mobile communication platforms. Combined with Wipro’s existing competencies, it helps us penetrate into high-growth segments like secure communications and gives us the capability to handle complete outsourcing deals in the evolving GSM, 3G and Tetra markets.”
“A win-win partnership”
Commenting on the announcement, Mr Niva said “This is a win-win partnership. Wipro adds scale and global reach to Saraware’s domain competencies and strong Nordic presence. Together, we will be able to establish ourselves as leaders in Wireless Networks and Secure Mobile platforms globally.” Sudip Nandy, Chief Strategy Officer, Wipro Technologies, said “Over the past few months through acquisitions in Europe we have added a local workforce in Portugal, Austria, France, and Germany. Saraware gives us a local workforce in the Nordics through a presence in Finland. This is in line with our drive to transform ourselves into a truly global company with a global workforce.”
Founded in 1945 and based in Bangalore (India), Wipro Technologies has more than 40 development centres, is one of the world’s largest product-engineering and support-service providers, and is the first PCMM Level 5 and SEI CMM Level 5 certified IT Services Company globally. Wipro provides comprehensive research and development services, IT solutions and services, including systems integration, information-systems outsourcing, package implementation, software application development and maintenance services. In Germany, Wipro trades under the name of WITfotech Solutions.
Saraware Oy was established in 1985 and has offices in six Finnish cities: Rovaniemi, Kokkola, Seinäjoki, Pori, Tampere and Helsinki. According to the company, 95 per cent of its employees hold a BSc Eng or MSc Eng qualification.
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