Indian IT outsourcing firm Wipro has bought its Brazilian rival Infoserver S.A. for $8.7 million in a deal that will add numerous Latin American banks to the company’s roster of clients.
Sao Paulo-based Infoserver offers fintech solutions, particularly those that assure information security and identity protection for banks. Intel Capital owns a 36.79% stake in it.
“This acquisition will provide Wipro with scale and key client relationships, especially in the banking, financial services, and insurance domains, which are the largest and fastest growing sectors in the region,” said Wpro’s Head for Emerging Markets, Ankur Prakash.
The financial services sector is Wipro’s largest industry vertical, accounting for 25% of its revenue. Recently, it put out a statement, claiming it helped ‘one of the largest Latin American’ banks increase transaction capacity four-fold.
Infoserver will not only help Wipro expand presence in Brazil, but also add technology and process knowledge to its assets. That’s because the Brazilian firm has collaborated with U.S. chip maker Intel to develop security technology for banks. According to Intel Capital, Infoserver counts four of Brazil’s five largest banks among its clients.
“The LATAM market and Brazil in particular is a strategic growth and investment region for Wipro,” Prakash said in the statement.
The Bangalore, India-based IT outsourcing firm runs delivery centers in several Latin American countries including Chile, Argentina, Colombia, and Mexico, in addition to Brazil.
In its research reports, the company has repeatedly praised the availability of skilled tech labor in Latin America, arguing that the region offers a wage arbitrage opportunity of about 30% when compared with the U.S. and Western Europe.