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Wipro acquires majority stake in Spectramind for Rs 4.07 billion

In an all-cash Rs 4.07 billion deal, IT major Wipro Limited has acquired majority stake in Spectramind e-Services.

The Bangalore-based Wipro has acquired an additional 66 per cent stake in Spectramind, in which the former's aggregate interest would now be around 90 per cent of all outstanding equity shares, including convertible preference shares.

Announcing the acquisition at a news conference in Bangalore on Friday, Wipro chairman Azim Premji said Spectramind earned a revenue of Rs 309 million for the quarter ended June 30, 2003, and a net profit of Rs 13 million.

As on June 30, 2002, Spectramind had seven customers and over 2700 employees. "For the year ending March 2003, Spectramind is estimated to achieve revenues of approximately $45 million", Premji said.

Revenue from Spectramind is estimated at $8 million for the quarter ending September 2002.

He noted that Wipro had also entered into a definitive agreement to acquire Hyderabad-based GE Medical Systems Information Technologies for Rs 281 million. Wipro would hold 100 per cent of the company upon completion of the transaction.

Premji said the two acquisitions were part of Wipro's strategy to "utilise and prioritise the cash". He noted that Wipro had a cash reserve of Rs 16 billion.

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