Wipro to buy Viteos Group for $130 mn

The acquisition of Viteos will be completed in the quarter ending March 31, 2016.

India’s third largest IT exporter,Wipro, said it has signed a definitive agreement to acquire the U.S.-based Viteos Group, a business process provider, for a purchase consideration of $130 million.

Through this acquisition, Wipro, which provides business process services to global investment banks, believes it can increase its capabilities for the sector.

Presently, the company specialises in platform-led transformation and utility-based offerings in reconciliation, KYC, settlements, middle-office, asset servicing, syndicated loans and reference data solutions. Viteos’ solutions will add similar capabilities on the buy-side of the business for the company, according to Wipro.

“The IT services industry is moving to a business provider ‘as-a-service' (BPaaS) model, and the future of BPS is going to be BPaaS,” said Shaji Farooq, President and Chief Executive, Finance Solutions, Wipro Ltd. “Our strategy is to invest in industry vertical platforms which will provide platform-based services to our clients in transaction and outcome-based pricing models. Viteos will further our strategy in the capital markets domain,” he said.

Viteos founded in 2003 is headquartered in New Jersey. The Viteos Group provides customized straight-through-processing services and integrates post-trade operations across every asset class, currency, border or structure for the alternative investment management industry in the United States, Europe and Asia. The acquisition is subject to customary closing conditions and regulatory approvals and will be completed in the quarter ending March 31, 2016. Post the deal closure, Viteos will continue to operate in its name.

“Considering the company’s strong brand recognition with alternative managers it will continue to operate under the Viteos name. The management team at Viteos will stay in place and drive Viteos’ platform-led outsourcing services into the larger asset management industry where Wipro’s sizable presence offers support,” according to the statement.