Wipro buys SAIC’s oil & gas IT biz

Wipro Technologies said it signed an agreement to acquire the US-based SAIC's global IT business.

Wipro Technologies today said it has signed an agreement to acquire the US-based SAIC’s global oil and gas IT services business for USD 150 million (Rs 668 crore).

Science Applications International Corporation’s (SAIC) global oil and gas IT practice provides consulting,system integration and outsourcing services to global oil majors. It has significant domain capabilities in digital oil field,petrotechnical data management and petroleum application services for upstream segment.

Post acquisition,about 1,450 employees are expected to move to Wipro across North America,Europe,India and Middle East,Wipro said in a statement.

“Oil and gas companies are investing in upstream business while looking at rationalising cost through IT. This acquisition will strengthen Wipro’s existing energy business unit,” Anand Padmanabhan,Senior Vice-President,Energy,Natural Resources and Utilities,Wipro Technologies said.

Rex Ballard,Senior Vice-President and General Manager,SAIC Commercial Business Services business unit said bringing his company skills and client base to Wipro increases the combined market potential.

It positions SAIC to capitalise on commercial business opportunities across the full breadth of the oil and gas industry,he said.

Completion of the acquisition is subject to customary closing conditions and regulatory approvals.