Bangalore, India and Edmonton, Canada, July 21, 2014: Last week saw leading India-headquartered global IT services and consulting company, Wipro, enter into a strategic alliance with one of Canada's premier corporations, the Alberta-based ATCO Ltd. to provide total outsourcing solutions to ATCO in Canada and Australia. As part of the deal Wipro is to acquire ATCO I-Tek, a subsidiary of ATCO which concentrates on managed IT solutions, for $ 195 million.
The arrangement is projected to result in annual revenues of over $ 112 million to Wipro annually, for the next ten years... making this a billion dollar deal -- the largest in Wipro's history.
Wipro is also expected to absorb some 500 ATCO IT employees as well as 700 employees of ATCO I-Tek.
“This alliance ensures ATCO can focus on growing our core businesses of structures and logistics, utilities, and energy while partnering with Wipro for strategic, innovative IT solutions required to support our global operations,” said Brian Bale, Senior Vice-President & Chief Financial Officer, ATCO. “Wipro’s deep domain capability and technology-leadership will also ensure we continue to deliver cost-effective services to our customers.”
Added Anand Padmanabhan, Chief Executive - Energy, Natural Resources and Utilities, Wipro: “We are delighted to collaborate with ATCO in this transformational initiative. Our focus will be to enable ATCO to enhance their competitiveness by deployment of strategic solutions and efficient delivery of IT services. We are confident that our domain expertise combined with the enhanced talent pool will help us support ATCO’s growth. We have traditionally had a strong position in the Utilities space in Europe and this engagement provides momentum to our business in Canada and Australia. The alliance with ATCO enhances our capability to create, nurture and tap local talent to power our growth journey in Canada”.