Wipro Acquires European System on Chip (SoC) Design Firm NewLogic; Acquisition to Establish Wipro's Global Leadership in the Wireless LAN and Bluetooth Space
BANGALORE, India—(BUSINESS WIRE)—Dec. 19, 2005—
Wipro Technologies (NYSE:WIT), the global IT Services
arm of Wipro Limited, announced today that it has signed a definitive
agreement to acquire the Austrian firm NewLogic in an all cash deal.
Under the terms of the agreement, Wipro, the world's largest third
party R&D services provider, will pay approximately EUR 47 Mn (US $56
Mn) to acquire 100% stake in privately held NewLogic. The
consideration includes cash payment on closure of the transaction as
well as earn outs on achieving targeted financial conditions over a 3
year period. NewLogic's estimated 2005 revenues is EUR 14Mn.
NewLogic is a leading semiconductor design services company with
intellectual property (IP) cores for complex wireless applications
like Wireless LAN and Bluetooth. It has an industry leading portfolio
of semiconductor IPs and components in the wireless applications space
and demonstrated innovative capabilities in the analog and Radio
Frequency (RF) design. These capabilities complement Wipro's own
portfolio of IP cores and patents in wireless and wireline
technologies areas, positioning the combined entity as the global
leader in this space.
Wipro gains 120 specialists through this acquisition,
strengthening its ability to provide proven semiconductor IP cores and
complete System-on-chip solutions with digital, analog mixed signal
and RF design services. The acquisition also provides Wipro with
access to 25 patent filings and over 20 customers in the product
engineering domain. These customers include Agere, Infineon and
Philips. Wipro is a leading solutions provider in the semiconductor
design services space with more than 1200 design engineers and the
acquisition further strengthens this position in the global design
services market. Europe currently contributes to 9% of Wipro's
revenues for R&D services in embedded products.
"In the product engineering space, ownership of IPs is a key asset
for building services revenues. The NewLogic acquisition is a
significant step in our plans to be the leader in the Wireless IP and
RF technology space. It will position Wipro as a complete SoC solution
provider to our customers. The acquisition also helps us consolidate
our position as leaders in this space and more particularly provides a
solid base for addressing the large market in Continental Europe,"
said Ramesh Emani, President, Product Engineering Solutions, Wipro
Technologies
Wipro will combine its global semiconductor IP portfolio, the
analog/mixed signal services and the European SoC design services with
NewLogic and create a new business unit under Product Engineering
Solutions group.
Hans-Peter Metzler, CEO of NewLogic will head the new business
unit and focus on addressing the growing customer needs for innovative
SoC solutions.
"This is a synergistic partnership where our clients will benefit
from Wipro's broad suite of capabilities and global services delivery.
We are excited about expanding NewLogic's market leading IPs and
services into Wipro's customer base. Wireless IP is a hot area and we
are confident that the new combined entity is well positioned to be
the #1 in this space," said Hans-Peter Metzler, CEO, NewLogic.
Commenting on the acquisition, Sudip Nandy, Wipro's Chief Strategy
Officer said, "This acquisition is a significant milestone in our
strategy towards creating a strong footprint in Europe and enhancing
our local delivery capability. We see immediate and considerable value
from the NewLogic team through their potential patent portfolio,
client base, and complementary skill-sets."
The entire transaction is expected to be closed during the next
one month. The closing of the transaction is subject to customary
closing conditions and regulatory approvals. We have arranged for
conference calls with senior management on Tuesday, December 20, 2005
at 8:00 AM Indian Standard Time (9:30 PM on December 19, 2005 Eastern)
to discuss the acquisition. For call-in numbers and further
clarifications, contact Jatin Dalal at email id jatin.dalal@wipro.com.
About Wipro Ltd.
Wipro Limited is the first PCMM Level 5 and SEI CMM Level 5
certified IT Services Company globally. Wipro is one of the largest
product engineering and support service providers worldwide. Wipro
provides comprehensive research and development services, IT solutions
and services, including systems integration, Information Systems
outsourcing, package implementation, software application development
and maintenance services to corporations globally. In Germany, Wipro
trades under the name of WITfotech Solutions.
In the Indian market, Wipro is a leader in providing IT solutions
and services for the corporate segment in India offering system
integration, network integration, software solutions and IT services.
Wipro also has profitable presence in niche market segments of
consumer products and lighting. In the Asia Pacific and Middle East
markets, Wipro provides IT solutions and services for global
corporations. Wipro's ADS' are listed on the New York Stock Exchange,
and its equity shares are listed in India on the Stock Exchange -
Mumbai, and the National Stock Exchange.
For more information, please visit our websites at www.wipro.com,
www.wiprocorporate.com and wipro.co.in.
Forward-looking and cautionary statements
Certain statements in this release concerning our future growth
prospects and our ability to successfully complete and integrate
potential acquisitions are forward looking statements, which involve a
number of risks, and uncertainties that could cause actual results to
differ materially from those in such forward looking statements. The
risks and uncertainties relating to these statements include, but are
not limited to, risks and uncertainties regarding our ability to
integrate and manage acquired IT professionals, our ability to
integrate acquired assets in a cost effective and timely manner,
fluctuations in earnings, our ability to manage growth, intense
competition in IT services including those factors which may affect
our cost advantage, wage increases in India, our ability to attract
and retain highly skilled professionals, time and cost overruns on
fixed-price, fixed-time frame contracts, client concentration,
restrictions on immigration, our ability to manage our international
operations, reduced demand for technology in our key focus areas,
disruptions in telecommunication networks, , liability for damages on
our service contracts, the success of the companies in which Wipro has
made strategic investments, withdrawal of fiscal governmental
incentives, political instability, legal restrictions on raising
capital or acquiring companies outside India, unauthorized use of our
intellectual property and general economic conditions affecting our
industry. Additional risks that could affect our future operating
results are more fully described in our filings with the United States
Securities and Exchange Commission. These filings are available at
www.sec.gov. Wipro may, from time to time, make additional written and
oral forward looking statements, including statements contained in the
company's filings with the Securities and Exchange Commission and our
reports to shareholders. Wipro does not undertake to update any
forward-looking statement that may be made from time to time by or on
behalf of the company. For further information, please visit our
websites at www.wipro.com, www.wiprocorporate.com and www.wipro.co.in.
Contact:
Media Contacts
Wipro Technologies (India)
Aravind Madhavan, +91-9880044742
Email Contact
or
Fortex Group (India)
Sunanda Sanganeria, +91 9811553623
Email Contact
or
Fortex Group (US)
Harjiv Singh, + 1 917 623 7793
Email Contact
or
VP Communications (UK)
Julia Vockrodt, +44 208 964 0260
Email Contact
or
Investor Contact
Jatin Dalal, Email Contact
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