Wipro CEO Abidali Z. Neemuchwala. Wipro and Ensono have also signed a long-term partnership agreement to jointly address the hybrid IT requirements of Wipro’s new and existing enterprise customers. Photo: Hemant Mishra/Mint
Wipro CEO Abidali Z. Neemuchwala. Wipro and Ensono have also signed a long-term partnership agreement to jointly address the hybrid IT requirements of Wipro’s new and existing enterprise customers. Photo: Hemant Mishra/Mint

Wipro to sell hosted data centre business to Ensono Holdings for $405 million

As part of the deal, Wipro will be transferring eight data centres and over 900 employees of the hosted data centre services business to Ensono

Mumbai: IT firm Wipro Ltd on Wednesday said that it has signed a definitive agreement to sell its hosted data centre services business to US-based hybrid IT services provider Ensono Holdings for $405 million, the company said in a stock exchange filing.

As part of the deal, Wipro will be transferring eight data centres and over 900 employees of the hosted data centre services business to Ensono.

“The acquisition significantly expands Ensono’s geographic footprint and global service capabilities, taking the company one step closer to achieving its vision of helping clients harness the power of hybrid IT to transform their businesses on a global scale," said the statement.

Wipro and Ensono have also signed a long-term partnership agreement to jointly address the hybrid IT requirements of Wipro’s new and existing enterprise customers. As part of the agreement, Wipro will make a strategic investment of $55 million in Ensono’s combined entity.

The hosted data centre services business is one of three that became a part of Wipro when it acquired Infocrossing Inc. in 2007. The other two businesses—Medicare and Medicaid services in the health insurance space and enterprise resource planning implementation services—have been integrated with other Wipro businesses and are not part of this divestment.

“This partnership will enhance the global data centre footprint and expand the available talent pool which will give us economies of scale and allow us to offer end-to-end capabilities in the infrastructure space, better than ever before," said Kiran Desai, senior vice-president, Global Infrastructure Services, Wipro.

Jefferies Llc acted as an exclusive financial adviser to Ensono for this transaction, while Credit Suisse acted as the sole financial adviser to Wipro.

Ensono is a hybrid IT services provider engaged in providing complete mainframe and hybrid IT services to enterprises across industries. Through the acquisition, Ensono is doubling in size, diversifying its client portfolio and will see its annualized revenue rise to over $550 million, the statement said.

“This is the third acquisition in less than three years for Ensono. This particular acquisition and partnership with Wipro substantially increases our ability to scale and service our growing client portfolio," said Ensono chief executive Jeff VonDeylen.

Ensono is increasing its geographic presence by expanding data centre operations in Germany, the UK and US, as well as establishing an operational presence in India, VonDeylen added.

The acquisition is subject to regulatory approvals and is expected to close in the quarter ending 30 June.

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