The Hindu Business Line : Wipro to buy Planet One arms

Deal details
Upfront cash payment of $23 million on closure of the transaction
Additional performance linked payments based on achieving agreed financial targets over a two-year period

Bangalore , Oct. 26

The $2.39 billion Wipro Infotech is set to acquire 3D Networks and Planet PSG in an all-cash deal.

The deal includes an upfront cash payment of $23 million on closure of the transaction and additional performance linked payments based on achieving agreed financial targets over a two-year period.

3D Networks provides communication solutions that include consulting, voice, data and converged solutions and managed services.

The company's specialised solutions are deployed in ITES/IT, telecom, banking and finance, Government and service verticals.

3D Networks and Planet PSG are subsidiaries of the Singapore-based Planet One.

Planet PSG is the sole Global Nortel technical services partner on Periphonics platform in APAC region and provides professional services on voice and speech platforms in the region.

In India, 3D Networks have 270 employees based in Mumbai and is profitable. It clocked revenues of approximately $36 million during FY 2005-06, a growth of 39 per cent year-on-year.

Acquisition strategy

"Our acquisition strategy here was to add new practice competencies and enhance our broad suite of service and solutions portfolio," said Mr Suresh Vaswani, President, Wipro Infotech and President-Global IT Service Lines, Wipro Technologies.

Mr S.K. Jha, Regional Director, India, SAARC, Middle East, 3D Networks said: "We are excited about this synergistic relationship. It allows us to leverage Wipro's comprehensive IT solutions offering and strong quality processes in our customer base. Our employees will benefit from the strong people practices and the challenging career opportunities possible in Wipro."

The closing of the transaction is subject to customary closing conditions and regulatory approvals; the acquisition is expected to be completed by Q3 of FY 2006-07.

MAPE Advisory Group acted as the financial advisor to Wipro on this transaction.

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