Wipro To Acquire Citigroup's Indian IT Subsidiary

IT bellwether Wipro Technologies has announced acquisition of Citi Technology Services, the India-based captive provider of IT services and solutions to Citigroup entities worldwide, for $127 million in an all-cash deal.

As part of the deal, Wipro and Citi will sign a Master Services Agreement for delivery of technology infrastructure services and application development and maintenance services for six years, which is projected to accrue $500 million during the contract.

"Citi has played a pioneering role in leveraging technology for banking. Our domain expertise and infrastructure management capabilities have positioned us as their partner of choice," said Wipro joint chief executive Girish S Paranjpe at a recent press conference convened to announce the deal.

Revenue of Citi Technology is expected to be about $80 million in 2008.

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