MUMBAI — Software firm Wipro Technologies has proposed to acquire U.S.-based Science Applications International Corporation’s (SAIC) oil and gas IT business in an all-cash deal of about $150 million.
The unit provides consulting, system integration and outsourcing services to global oil majors. “Oil and gas companies are investing in the upstream business, while looking at rationalising cost through IT. The acquisition of SAIC’s global oil and gas information technology practice will strengthen Wipro’s existing Energy business unit,” Wipro Technologies Senior VP (Energy, Natural Resources and Utilities SBU) Anand Padmanabhan said.
“As a result of the transaction, about 1,450 employees are expected to move to Wipro across North America, Europe, India and Middle East,” it said, adding that Wipro’s Energy, Natural Resources and Utilities Strategic Business Unit (SBU) is a high-growth unit and this acquisition will further strengthen Wipro’s leadership position.
The SAIC division has significant domain capabilities in the areas of digital oil field, petro-technical data management and petroleum application services addressing the upstream segment.
“IT spend in this sector is expected to grow as customers increasingly look to grow newer streams of revenues, optimise their operational cost and find better ways to become environmentally conscious,” Wipro said.
Completion of the acquisition is subject to customary closing conditions and regulatory approvals. In February, Wipro had restructured its business to form six SBUs to accelerate growth of the company.