Wipro Ltd, India's No 3 software service exporter, said on December 29 that it has signed an agreement to buy privately-held Austrian chip-design firm, NewLogic, for 47 million euros ($56 million) in an all-cash deal.
The Bangalore-based, New York-listed Wipro said it would acquire 100 percent in the Austrian company, whose estimated revenue for 2005 is 14 million euros.
Wipro officials told a news conference 21 million euros would be paid upfront to acquire NewLogic, with the remaining amount linked to milestones subject to undisclosed performance targets, to be paid over a 3-year period. The transaction is expected to be closed within a month.
"This acquisition is a significant milestone in our strategy towards creating a strong footprint in Europe and enhancing our local delivery capability," Wipro's chief strategy officer, Sudip Nandy, said in a statement.