WIPRO signed master agreement with ATCO

Wipro has entered into a dual agreement with a Canadian firm ATCO. With this Master agreement signed by both the parties Wipro will now provide outsourcing services to the corporation and also acquire its IT arm.

The acquisition has been agreed on an all cash consideration of CAD $120 mn which will be settled by the third quarter of 2014.

As part of the alliance, Wipro will provide outsourcing solutions, including infrastructure management and application development and maintenance, to ATCO in Canada and Australia for 10 years upto December 2024.

"This alliance ensures ATCO can focus on growing our core businesses of structures and logistics, utilities, and energy while partnering with Wipro for strategic, innovative IT solutions required to support our global operations," said Brian Bale, Senior Vice-President & Chief Financial Officer, ATCO.

Anand Padmanabhan, Chief Executive - Energy, Natural Resources and Utilities, Wipro, said, "We are delighted to collaborate with ATCO in this transformational initiative. Our focus will be to enable ATCO to enhance their competitiveness by deployment of strategic solutions and efficient delivery of IT services. We are confident that our domain expertise combined with the enhanced talent pool will help us support ATCO's growth. We have traditionally had a strong position in the Utilities space in Europe and this engagement provides momentum to our business in Canada and Australia. The alliance with ATCO enhances our capability to create, nurture and tap local talent to power our growth journey in Canada."

The alliance on one hand will help Bengaluru based giant in strengthening its presence in Canada and Australia through ATCO-I tek, a subsidiary of Canadian firm. WIPRO will be able to tap and nurture the local talent for marking its presence. However, for ATCO the sale took place due to Alberta Utility Commision's increasing regulations.