Wipro to sell hosted data centre business for $405 million

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IT services major Wipro said it has signed an agreement to sell hosted data centre services business to US-based firm Ensono for $405 million.

Wipro and Ensono have also signed a long-term partnership agreement to jointly address the hybrid IT need for Wipro’s new and existing enterprise customers, said the company in a statement.

As part of the agreement, the $8.4 billion Indian IT services major would “make a strategic investment of $55 million in Ensono’s combined entity. Ensono is a hybrid IT service providers that offers solutions for both on-premise and cloud.

Wipro said it would unlock value by transitioning eight data centres and more than 900 employees of its hosted data center services business to Ensono.

Hosted data centre services is one of the three businesses that became a part of Wipro when it acquired Infocrossing Inc in 2007.

The other two businesses — Medicare & Medicaid services in the health insurance space and ERP implementation services — have been integrated with other Wipro businesses and are not part of this divestment, said the company.

“This partnership will enhance the global data center footprint and expand the available talent pool which will give us economies of scale and allow us to offer end-to-end capabilities in the infrastructure space, better than ever before,” Kiran Desai, Senior Vice President, Global Infrastructure Services, Wipro, was quoted saying.

Source: Economic Times