Wipro buys key 3D Networks, Planet PSG operations

BANGALORE: Wipro Infotech has announced the acquisition of India, Middle East and SAARC operations of 3D Networks and Planet PSG in an all-cash deal. The consideration includes an upfront cash payment of approximately $23m on closure of the transaction and additional performance linked payments based on achieving agreed financial targets over a two year period.

3D Networks, a Platinum partner of Nortel Networks, provides business communication solutions that include consulting, voice, data and converged solutions and managed services. The company’s specialised solutions are deployed in ITES/IT, telecom, banking and finance, government and service verticals.

In India, 3D Networks has approximately 270 employees serving several marquee customers. During fiscal ’05-06, the company clocked revenues of approximately $36m, a growth of 39% YoY. A profitable entity, it commenced India operations in ’01.

Planet PSG is the sole Global Nortel Technical Services partner on Periphonics platform in APAC region and provides professional services on voice and speech platforms in the region. The closing of the transaction is subject to customary closing conditions and regulatory approvals.

The acquisition is expected to be completed by Q3 of FY07. MAPE Advisory Group acted as the financial advisor to Wipro on
this transaction. Suresh Vaswani, President, Wipro Infotech and President- Global IT Service Lines, Wipro Technologies said, “India’s emergence as the outsourcing hub for global majors is fuelling demand for convergence solutions.

3D Networks’ strong integration skills in convergence technologies, customer base and proven track record complements and enhances our existing comprehensive IT solutions and services. Customers will immensely benefit from our broad suite of offerings in converged space. Our acquisition strategy here was to add new practice competencies and enhance our broad suite of service and solutions portfolio.”