Giant Indian IT services company Wipro has signed a definitive agreement to sell its hosted data centre services business to US-based hybrid IT services provider Ensono.
The deal, valued at US405 million will see Wipro transition eight data centres, and over 900 employees of its hosted data centre services business, to the Chicago-based Ensono.
Ensono says the acquisition significantly expands its geographic footprint and global service capabilities, taking the company one step closer to achieving its vision of helping clients harness the power of hybrid IT to transform their businesses on a global scale.
Wipro and Ensono have also signed a long-term partnership agreement to jointly address the hybrid IT requirements of Wipro’s new and existing enterprise customers.
{loadposition peter}As part of the agreement, Wipro will make a strategic investment of US55 million in Ensono’s combined entity.
The hosted data centre services business is one of the three businesses that became a part of Wipro when it acquired Infocrossing in 2007. The other two businesses -- Medicare & Medicaid services in the health insurance space and ERP implementation services -- have been integrated with other Wipro businesses and are not part of the divestment to Ensono.
“As we embrace our strategy of focusing on newer digital areas of spend, our strategic investment and partnership with Ensono will enable us to remain committed to meeting the hosted data center services requirements of our customers. This partnership will enhance the global data centre footprint and expand the available talent pool which will give us economies of scale and allow us to offer end-to-end capabilities in the infrastructure space, better than ever before,” said Kiran Desai, Senior Vice President, Global Infrastructure Services, Wipro.
Ensono provides hybrid IT services, from cloud to mainframe, that enable clients to digitally transform their business.
Through the acquisition, Ensono is doubling in size, diversifying its client portfolio and increasing its annualised revenue to be in excess of US550 million.
Ensono CEO Jeff VonDeylen said the acquisition of Wipro’s data centre business was the third acquisition in less than three years for Ensono.
“This particular acquisition and partnership with Wipro substantially increases our ability to scale and service our growing client portfolio. We are increasing our geographic presence by expanding our data centre operations in Germany, UK and the US, as well as establishing an operational presence in India.
“These are strategic moves that bring us one step closer to our vision of being a recognised leader in true hybrid IT and a relentless ally to our clients.”
The acquisition is subject to customary closing conditions and regulatory approvals and is expected to close in the quarter ending June 2018.