Date:16/05/2006 URL: http://www.thehindubusinessline.com/2006/05/16/stories/2006051603790400.htm

Back Wipro Tech to buy Quantech Global

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Gains space in CAD/CAM domain

GROWING BIGGER: Mr A. L. Rao (right), Chief Operationg Officer, Wipro Technologies, and Mr Mukesh Gandhi, Chief Executive, Quantech, at a press conference in Bangalore on Monday. - G. R. N. Somashekar

Bangalore , May 15

Following the popular trend of `plugging competency gaps', Wipro Technologies has now entered the Computer Aided Design and Manufacturing (CAD/CAM) domain by acquiring US-based Quantech.

The IT services division of the $2-billion Wipro Ltd is set to acquire Quantech Global Services LLC and its Indian arm. Quantech's revenues stood at $12.7 million in calendar 2005. The consideration includes upfront cash payment in the range of $10 million and earn-outs on achieving agreed financial targets over a three-year period. Quantech was profitable in CY-05.

"The cash payment is 0.7-0.8 times the revenues of the company," revealed Mr Sudip Nandy, Chief Strategy Officer, Wipro Technologies. The entire transaction would close in three weeks.

Quantech's offshore revenues grew at a CAGR (compound annual growth rate) of 15 per cent quarter-on-quarter (QoQ) for the last eight quarters.

The new entity, headed by Mr Mukesh Gandhi, Chief Executive Officer, Quantech, would allow Wipro Technologies to enter new domains such as aerospace and appliance markets.