Wipro to buy HealthPlan Services

Wipro Ltd has agreed to buy HealthPlan services, a Florida, US based company that caters to the health insurance sector for $460 Million. This is the third buyout by India’s third largest software services exported in less than three months.

Earlier in December, Wipro spent $78 Million to buy Cellent, a German Technology Company that implements and maintains SAP (Systems Applications and Products) software for clients in automobile and manufacturing segments. Later, it bought a securities processing and fund administration services provider Viteos Group for $130 Million as the company looks to expand its portfolio of services to financial companies.

Both HealthcarePlan services and Viteos Group offer solutions over cloud computing platforms or what is called as Business process as a service. The partnership with HealthPlan services positions Wipro to participate in the shift of the US Health insurance industry towards a customer centric business model.

HealthPlan services strengthen Wipro position in the health insurance exchange market while offering synergies with Wipro presence in the Managed Medicare and commercial group insurance markets. This is Wipro fourth acquisition in last 12 months. 

Wipro buys Viteos

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.