Wipro to sell EcoEnergy business to Chubb Alba for $70 million
Deal is expected to close in early 2017 after Chubb Alba receives approval from the Competition Commission of India
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New Delhi: In a bid to sharpen focus on its core IT business, Wipro Ltd on Wednesday said it will sell its EcoEnergy division to Chubb Alba Control Systems for $70 million.
Chubb Alba is an indirect subsidiary of United Technologies Corporation (UTC), which is a major US multinational with sales of $56 billion and has 2 lakh employees.
“Wipro has been sharpening focus on its core IT business. Since business carried out by EcoEnergy division is not core and strategic to overall IT business of the company, it has been decided to divest the business,” Wipro said in a filing to BSE.
The consideration of the deal, which is expected to close in early 2017, is for $70 million, it added. Approval from the Competition Commission of India (CCI) will be obtained by the buyer, it said.
“Since this is a sale of business division, there will be no consequent change in shareholding pattern of the company,” Wipro added. The said division, which has a net worth of Rs15.6 crore, clocked revenue of Rs67.64 crore in FY2015-16. UTC operates through 4 segments—UTC Climate, Controls and Security; Otis; Pratt and Whitney; and UTC Aerospace Systems.