Wipro Ltd. has agreed to buy Viteos
Group, a securities processing and fund administration services provider, for
$130 Million in an effort to expand its portfolio of services to financial
companies.
The 12 year old New Jersey based
Viteos provides services including processing, reconciliation of trade,
settlements and customer data across asset classes and currencies for
investment banking clients in the US, Europe and Asia. Wipro plans to use Viteos
licensing platform to offer services to buy side companies, a term used by
investment bankers to refer to institutions that buy investment services such
as mutual funds, pension funds and insurers.
Wipro, India’s third largest
software exporter already offers many of these solutions to its clients on the
sell side of capital markets. They in turn, sell investment services to asset
management companies. Viteos, which generated $26.5 Million in revenue in the year
ended March with roughly 400 employees, will retain its brand identity to
further strengthen its presence among existing clients.
The acquisition reflects a broader
shift in India’s software outsourcing industry towards building an arsenal of
intellectual property led high margin software platforms rather than relying on
an army of engineers to offer technology solutions to clients. Wipro and
Infosys have also been investing heavily in startups to build new age
technology solutions for clients.
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