Wipro Technologies, the global IT business of Wipro Limited (NYSE:WIT), a leading Information Technology, Consulting and Outsourcing company, signed an agreement to acquire the Global Oil and Gas Information Technology practice of the Commercial Business Services business unit of Science Applications International Corporation (SAIC) (NYSE:SAI), for an all cash consideration of approximately US$ 150 million, subject to adjustments.
SAIC’s Global Oil and Gas Information Technology practice provides Consulting, System Integration and Outsourcing Services to Global Oil majors with significant domain capabilities in the areas of Digital Oil Field, Petro-technical Data Management and Petroleum Application Services addressing the upstream segment.
As a result of the transaction, approximately 1,450 employees are expected to transition to Wipro across North America, Europe, India and Middle East.
Wipro’s Energy, Natural Resources and Utilities Strategic Business Unit (SBU) is a high-growth SBU and this acquisition will further strengthen Wipro’s leadership position. IT spend in this sector is expected to grow as customers increasingly look to grow newer streams of revenues, optimize their operational cost and find better ways to become environmentally conscious.
Anand Padmanabhan, Senior Vice President, Energy, Natural Resources and Utilities SBU, Wipro Technologies, said, "Oil & Gas companies are investing in the upstream business while looking at rationalizing cost through IT. The acquisition of SAIC’s Global Oil & Gas Information Technology practice will strengthen Wipro’s existing Energy business unit in becoming a long term strategic partner in our customer’s transformation journey. We are happy to have the SAIC team on board. Their domain consultancy and competencies significantly enhances Wipro’s capabilities in the Upstream Oil & Gas space and further strengthens Wipro’s position as an end to end leader in servicing customers.”
“We are excited at the prospect of joining a company that has such a strong, strategic focus in multi-national commercial IT services,” said Rex Ballard, Senior Vice President and General Manager of SAIC’s Commercial Business Services business unit. “Bringing our skills and client base to Wipro increases our combined market potential and positions us to capitalize on commercial business opportunities across the full breadth of the oil and gas industry. The combined organization will give clients access to an enhanced portfolio of technologies and solutions and provide employees with increased opportunities for career development.”
Completion of the acquisition is subject to customary closing conditions and regulatory approvals.