Bangalore: India's third-largest software services exporter, Wipro Ltd, said on Thursday its engineering arm had bought Swedish hydraulic components maker Hydrauto Group AB for $31 million in an all cash deal.
The deal is likely to be completed by the end of 2006, the company said in a statement.
Wipro Infrastructure Engineering (WIN), a unit of Bangalore-based Wipro Ltd, provides engineered hydraulic components and solutions in India and other parts of Asia. It reported revenue of $57 million in the year ended March 31.
"This acquisition gives WIN a unique Asia-Europe footprint, a customer base built over the past few decades and deep complementary engineering skills," Anurag Behar, managing director of WIN, said in the statement.
Shares in Wipro were up 0.13 per cent at Rs 520.95 in a flat Mumbai market. "It's not the core software business where the acquisition has happened," an IT industry analyst with a Mumbai brokerage firm said.
"The engineering arm doesn't account for a major chunk of its businesses and, therefore, the market reaction is weak." Hydrauto provides hydraulic components and solutions to firms in Europe.
For the year ended December 31, 2005, its revenues were $112 million. The software business arm of Wipro, which counts telecoms gear makers Cisco and Nortel among key clients, has bought six western companies since December last year.
Its recent purchases include Finland's Saraware Oy for $31.90 million and US-based Qauntech Global Services LLC Wipro, owned by India's richest man, Azim Premji, is a diversified firm with minor interests in computer hardware and consumer goods such as lighting and soaps.
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