India's Wipro Agrees To Buy SAIC's IT Unit For $150 Million

India's Wipro Agrees To Buy SAIC's IT Unit For $150 Million

Wipro Technologies, a software firm has offered cash deal of about $150 million to purchase US-based Science Applications International Corporation's (SAIC) oil and gas IT business. SAIC is a scientific, engineering and technology applications company. The company has a subsidiary in India that operates in Noida and Bangalore.

Anand Padmanabhan, Wipro Technologies Senior VP (Energy, Natural Resources and Utilities SBU) said that acquisition of SAIC by Wipro will brace Wipro's existing business unit. The oil and gas units are planning to invest in upstream business with an intension to rationalize its cost through IT. Global oil majors will be benefited by this entity in terms of consulting services, outsourcing services and system integration services.

The SAIC has competence in the areas of digital oil field, petro-technical data management and petroleum application services to deal with upstream segment.

However the acquisition of SAIC by Wipro depends upon customary closing conditions and regulatory approvals. To gather the pace of the company, Wipro in February has reorganized its business to form six SBUs.

This acquisition is Wipro's second biggest acquisition in the IT industry, the biggest acquisition was its $600 million takeover of Infocrossing.

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