Saturday, September 29, 2007

Wipro buys Singapore design company

Continuing with its string-of-pearls acquisition strategy, Wipro has entered into an agreement to acquire a Singapore-based design services semiconductor firm in an all-cash deal. However, the value of the deal was not disclosed.

Wipro Technologies will acquire Oki Techno Centre Singapore (OTCS), a wholly-owned subsidiary of Oki Electric Industry, Japan, over a period of one year and this would be its second acquisition in the semiconductor space with the earlier one being NewLogic.


OTCS registered revenues of 8.8 million Singapore dollars for the fiscal year ended March 31, 2007 and has a 40-member team. Vasudevan Aghoramoorthy, V-P, Wipro Technologies said, this acquisition will enable them to meet the demand for newer wireless technologies and also expand its breadth of offering in the semiconductor design space.
For the first time, Wipro Technologies has made an acquisition in the Far East region with all its previous buyouts in the US and Europe.

OTCS is focussed on wireless design and has capabilities in radio frequency (RF) technologies. It mainly works for the parent company with some third party clients and Wipro expects to provide solutions for the semiconductor companies.

Sudip Nandy, chief strategy officer, Wipro, said, "Wipro sees this transaction as strategic fitment in building niche competencies which will enhance our presence among technology companies in Japan."

Wipro Technologies has also entered into an agreement with Oki Electric to set up a dedicated development centre in Bangalore. Mr Aghoramoorthy said, this centre will work with tandem with the Singapore centre.

"OKI has been enhancing its design and development skills. We have been looking for a global partner to improve our efficiency in semiconductor design through outsourcing," said Masahiko Morioka, president, silicon solutions company at Oki Electric Industry.

Source: ET

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