Wipro Ltd, India's number three software service exporter, said on Monday it has signed an agreement to buy privately-held Austrian chip-design firm, NewLogic, for 47 million euros (US$56 million) in an all-cash deal.
The Bangalore-based, New York-listed Wipro said it would acquire 100 percent in the Austrian company, whose estimated revenue for 2005 is 14 million euros.
Wipro officials told a news conference 21 million euros would be paid upfront to acquire NewLogic, with the remaining amount linked to milestones subject to undisclosed performance targets, to be paid over a three-year period.
The transaction is expected to be closed within a month.
"This acquisition is a significant milestone in our strategy towards creating a strong footprint in Europe and enhancing our local delivery capability," Wipro's chief strategy officer, Sudip Nandy, said in a statement.
Wipro said a combined team of 1350 engineers will help the company address a global market of US$1 billion in design and services linked to communication standards in semiconductors.
The acquisition gives Wipro access to 120 experts, 25 patent filings and 20 customers including Infineon Technologies AG, Wipro said.
"While NewLogic has its own royalties based on patents, Wipro can provide complimentary services from India to global customers," Nandy said.
NewLogic specialises in wireless technologies such as Blue Tooth.
The Bangalore-based, New York-listed Wipro said it would acquire 100 percent in the Austrian company, whose estimated revenue for 2005 is 14 million euros.
Wipro officials told a news conference 21 million euros would be paid upfront to acquire NewLogic, with the remaining amount linked to milestones subject to undisclosed performance targets, to be paid over a three-year period.
The transaction is expected to be closed within a month.
"This acquisition is a significant milestone in our strategy towards creating a strong footprint in Europe and enhancing our local delivery capability," Wipro's chief strategy officer, Sudip Nandy, said in a statement.
Wipro said a combined team of 1350 engineers will help the company address a global market of US$1 billion in design and services linked to communication standards in semiconductors.
The acquisition gives Wipro access to 120 experts, 25 patent filings and 20 customers including Infineon Technologies AG, Wipro said.
"While NewLogic has its own royalties based on patents, Wipro can provide complimentary services from India to global customers," Nandy said.
NewLogic specialises in wireless technologies such as Blue Tooth.