Bangalore, Karnataka, India:
Wipro Limited (NYSE:WIT), today announced that it has signed a definitive agreement to acquire cMango Inc., a Sunnyvale, California, US-headquartered company in an all cash deal. cMango has multiple offices in the US as well as offices in the UK, Singapore and a Delivery center in Pune, India. Under the terms of the agreement, the consideration to acquire 100% stake in privately held cMango includes cash payment of $20 Mn on closure of the transaction as well as earn-outs based on achieving targeted financial metrics over a two year period. cMango, a company focused on Business Service Management (BSM) Solutions, has annualized revenue of around $13 Mn. cMango will be part of the Technology Infrastructure Services (TIS) Service-line of Wipro Technologies, a leader in remote infrastructure services. Wipro Technologies is the Global IT division of Wipro Ltd.
cMango creates business solutions for customers using the right combination of People, Process and Technology. cMango's services comprise business transformation, ITIL consulting, service management solution architecture, implementation, training and support services. cMango leverages the industry's top BSM solutions from BMC® Software Inc. (NYSE:BMC) such as BMC Remedy, BMC Marimba and other complementary technologies.
In addition to being a BSM Certified Partner, cMango is a BMC Value Added Reseller, Systems Integrator and Technical Support and Training Partner for BMC. cMango is also a BMC Managed Services Partner.
Commenting on the transaction, Pravin Jain, CEO, cMango said, "The cMango team is delighted to join the Wipro family. This partnership brings together the specialized expertise of cMango in BMC's BSM solutions and Wipro's wide range of services and extended global reach. We are confident that this winning combination can significantly expand the market addressed and provide superior customer solutions, emerging as the leader in the BSM space."
The acquisition is in line with Wipro's strategy to invest in areas where it can establish leadership through differentiated service lines and domain knowledge. Wipro is the leader amongst offshore Infrastructure Management Services players and has a track record of rapid growth in its Technology Infrastructure Services business (last quarter growth rate was 45% Year on Year and 16% sequential), and expects this acquisition to help scale growth in this area.
"Business Service Management implementations are accelerating globally as IT and business leaders recognize the competitive advantages BSM delivers by empowering companies to manage their IT infrastructure from a business perspective," said Bob Beauchamp, President and CEO, BMC Software. "The union of cMango's proven BSM implementation capabilities and Wipro's reach will deliver significant benefits to companies moving to a BSM model."
Through this acquisition, Wipro Technologies adds a 120-member strong team and deep domain expertise in BSM, which enables IT to deliver faster, more comprehensive and consistent business services, while increasing revenue opportunities and reducing service cost and business risk.
"Technology Infrastructure Services is a differentiated service line wherein we constantly innovate in enhancing service offerings and transforming the service delivery paradigm in our quest for delivering superior customer value. The acquisition of cMango furthers our relationship with BMC, the leading provider of BSM solutions, and strengthens our capability in this arena that focuses on business criticality. Wipro's offerings in the Infrastructure Management space combined with the consulting edge of the BSM layer will offer a compelling value proposition for our customers and propel significant growth" said Suresh Vaswani, President, Global IT Service Lines, Wipro Technologies.
Commenting on the acquisition, Sudip Nandy, Wipro's Chief Strategy Officer said, "This acquisition is a significant milestone in our strategy towards creating a strong value proposition in emerging areas in a growth business like Technology Infrastructure Services. We see significant value from the cMango team through their potent consulting skills, breadth of service portfolio and domain depth".
The closing of the transaction is subject to customary closing conditions and regulatory approvals, which are expected to be concluded by April 2006.
For details about Wipro Limited & forward-looking and cautionary statements please see link below:
For more information on cMango, visit www.cmango.com
Investor Contact: Jatin Dalal, [email protected]
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