Friday 18 July 2014

Wipro gains 3% on strategic alliance with Canada's ATCO

Wipro, a global information technology, consulting and business process services company, entered into a strategic alliance with Canada-based ATCO.

Investors continued to buy shares of  Wipro on Friday after global information technology, consulting and business process services company entered into a strategic alliance with Canada-based ATCO. The stock gained more than 3 percent. As part of this alliance, Wipro will provide total outsourcing solutions to ATCO in Canada and Australia. This arrangement is projected to result in revenues of over CAD 120 million (USD 112 million) to Wipro annually, for the next ten years (up to December 2024). "Focus will be to enable ATCO to enhance their competitiveness by deployment of strategic solutions and efficient delivery of IT services," said Anand Padmanabhan, chief executive - energy, natural resources and utilities. Wipro’s IT services delivery model will be further strengthened in North America and Australia by ATCO I-Tek, a subsidiary of ATCO with a presence in both these geographies, which will now become a part of Wipro for an all-cash consideration of CAD 210 million (USD 195 million). ATCO I-Tek has been providing IT Services to ATCO for the past 15 years, said the company in its filing.

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