Wipro Technologies, the global IT Services arm of Wipro Limited (NYSE:WIT), announced today that it has signed an agreement to acquire Europe based retail solutions provider, Enabler in an all cash deal. The consideration includes upfront cash payment of approximately Euros 41 Million (which includes actual cash and cash equivalents on the balance sheet) on closure of the transaction as well as earn-outs on achieving agreed financial targets over a two year period. 

Enabler was created in 1997, through the planned separation of the IS/IT department of Portugal’s leading retailer, Modelo Continente, a division of Sonae Group. Enabler is a preferred integrator of Oracle Retail (Retek) solutions and provider of Retail consulting services for global retailers. 

Enabler is one of the leading specialists in consulting and implementation of integrated solutions and effective support of retail systems.  Enabler has an impressive customer  base that includes more than a dozen Oracle Retail implementations for a diverse set of Retail formats (Food, Fashion, DIY) covering most of  the Oracle Retail modules.

Enabler, with delivery centers in Portugal and Brazil, has over 300 employees serving customers in Portugal, UK, Germany, France, Spain, Italy, Middle East and Brazil.  During CY2005 Enabler’s revenues were approximately Euros 30 Million and the company’s profitability was in line with the industry leaders and its peers in the IT Services space.

Sudip Banerjee, President, Enterprise Solutions, Wipro Technologies said, “Retail industry is one of the largest and fastest-growing sectors in the Enterprise Solutions market for Wipro.  Enabler’s proven and reference-able track record in Retail domain consulting and package implementation skills helps us strengthen our position as a preferred solutions provider to large Retailers globally.”

Bhanu Murthy, Senior Vice President, Retail, CPG & Distribution solutions, Wipro Technologies said, “Enabling our clients to win by building a distinct competitive advantage for them forms an integral part of the Spirit of Wipro. We believe Enabler will enhance Wipro's deep Retail knowledge and Package implementation expertise globally and brings strong relationships with some of Europe’s best-known retailers and wholesalers.”

“This is a win-win partnership where our clients will benefit from Wipro’s scale, range of complementary services, and the proven global services delivery capability.  We are excited about expanding Enabler’s offerings in Retail solutions into Wipro’s customer base worldwide.”  said  Antonio Murta, CEO of Enabler.

“Enabler has been a strong partner of Oracle in bringing our Retail Solutions to the customers. Oracle and Wipro have been partnering on enhancing value to our customers. With the combined strengths of Enabler and Wipro, we believe that we have a very strong implementation, consulting and support partner across the globe.” said Duncan Angove, Senior Vice President and General Manager, Oracle Retail.

Sudip Nandy, Chief Strategy Officer, Wipro Technologies commented “This acquisition is in keeping with Wipro’s articulated strategy of enhancing our domain skills.  In addition, this transaction expands our geographic footprint and adds two new delivery centers in strategic locations such as Portugal and Brazil. ”

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.

Langham Capital were the financial advisors to Wipro on this transaction.

About Wipro Ltd.

Wipro Limited is the first P CMM Level 5 and SEI CMM Level 5 certified IT Services Company globally.  Wipro provides comprehensive IT solutions and services, including systems integration, Information Systems outsourcing, package implementation, software application development and maintenance, and research and development services to corporations globally.  

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 ADSs 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, among others. 

For more information, please visit our websites at www.wipro.com, http://www.wiprocorporate.com

Forward-looking and cautionary statements
Certain statements in this release concerning our future growth prospects 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 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, our ability to successfully complete and integrate potential acquisitions, 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.

Investor Contact

Jatin Dalal
e-Mail: Jatin.dalal@wipro.com
Phone: +91 80 25056143

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