Skip to main content

Wipro Buys Telecom Design Firm

The company will pay about $32 million.
  • Author:
  • Publish date:

Wipro

(WIT) - Get Wipro Limited Report

continued its buying spree on Thursday, announcing it will buy Finland-based

Saraware Oy

for about $31.7 million.

Saraware Oy provides design and engineering services to telecommunications companies. The company's expertise includes radio networks and secure mobile platforms.

The all-cash deal includes an upfront payment and debt takeover, and earnouts if financial goals are met in an 18-month period.

In a statement, Ramesh Emani, president of product-engineering services for Wipro, said the acquisition gives the company a presence in Finland and the Nordic region, a hub for wireless infrastructure companies.

"We need near-shore development centers, as we take up more complex and end-to-end engagements with our customers," Emani said. "In addition, this acquisition brings niche skills in development of base station controllers and mobile communication platforms."

Scroll to Continue

TheStreet Recommends

He said the pick-up will give the company the ability to handle complete outsourcing deals in GSM, 3G and Tetra markets.

The transaction is expected to close in a month.

Saraware Oy is the second design firm Wipro has

snapped up in a month. In May, the Indian IT services company bought

Quantech Global Services

. And just last week,

Wipro paid $52.5 million for

Enabler

, a European IT services and consulting business for the retail sector.

Wipro shares sank 6.5%, or 74 cents, to $10.61, on another down day for the market.