Wipro Ltd. (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading global information technology, consulting and business process services company today announced that it has signed a definitive agreement to acquire Viteos Group, a BPaaS (Business Process as-a-Service) provider for the alternative investment management industry for a purchase consideration of USD 130 million.
Wipro is one of the leading providers of Business Process Services (BPS) to a number of global investment banks. The company specializes in platform-led transformation and utility-based offerings in reconciliation, KYC, settlements, middle-office, asset servicing, syndicated loans and reference data solutions, with coverage across asset classes. These specializations of Wipro are primarily on the sell-side of the industry and this acquisition will add similar capabilities on the buy-side.
Viteos was founded in 2003 and is headquartered in Somerset, New Jersey. The Viteos Group provides customized straight-through-processing and integrates post-trade operations across every asset class, currency, border or structure for the alternative investment management industry in the United States, Europe and Asia. It is a leader in shadow-accounting services and offers a full range of middle- and back-office outsourcing through its 400+ employees.
Viteos licenses its proprietary platform which offers transformation and integration of post-trade operations. To capture non-linear and higher revenue in addition to revenue from alternatives, the Viteos platform is designed to launch technology-based solutions across other segments of capital markets. Considering the company’s strong brand recognition with alternative managers it will continue to operate under the Viteos name. And, the management team at Viteos will stay in place and drive Viteos’s platform-led outsourcing services into the larger asset management industry where Wipro’s sizable presence offers support.
"The IT services industry is moving to an ‘as-a-Service' model, and the future of BPS is going to be BPaaS. Our strategy is to invest in industry vertical platforms which will provide platform-based services to our clients in transaction and outcome-based pricing models. Viteos will further our strategy in the capital markets domain,” said Shaji Farooq, President & Chief Executive, Finance Solutions, Wipro Limited.
“We welcome Viteos employees to the Wipro Family. We are excited to join hands with Viteos and expand our capital markets portfolio in fund accounting services and enhance our Business Process Services capabilities,” said Nagendra Bandaru, Senior Vice President and Head – Business Process Services, Wipro Limited. He added, “Viteos brings with it experienced leadership, domain expertise and unique BPaaS capability. We believe we will be able to leverage synergies to offer platform-based transformational services to our customers and continue to dominate the capital markets outsourcing space.”
“Our search for a global partner who gives Viteos exceptional market reach in expanding our presence while preserving the entrepreneurial characteristics of Viteos culminated with this acquisition by Wipro. We are excited to be part of a trusted global leader and the transaction is a further recognition of our value and validation of our commitment to deliver excellence through our investments in people, process and technology. It gives me immense pleasure in continuing to be part of a growth story that can reach even greater heights,” said Shankar Iyer, CEO & founder of Viteos Group.
The acquisition is subject to customary closing conditions and regulatory approvals and will be completed in the quarter ending March 31, 2016.