Bengaluru, NFAPost: Wipro, leading leading information technology, consulting and business
process services company, acquired Vara lnfotech. It also fetched $300 million deal for the company from ICICI Bank.
Vara Infotech, earlier known as Vara United, is a global software solution and services company with over 3500 workers that provide a comprehensive range of services catering to the Banking, Financial Services and Insurance (BFSI) segment. The Bengaluru-based Vara’s agile and collaborative approach in developing customized and revolutionary solutions help our customers derive maximum profits from their business.
In a regulatory filing, Wipro states that its has clinched a strategic seven-year engagement, valued at $300 million, from ICICI Bank. As per the agreement, Wipro will provide a comprehensive suite of services by taking over Vara Infotech assets in an all cash deal of Rs 321 crore.
Wipro has a significant presence as an IT services provider in the global banking and financial services
sector. Wipro provides innovative solutions to banks by leveraging the company’s Artificial Intelligence platform Wipro HOLMES. The company believes that the deal will further strengthen Wipro’s endeavor to provide differentiated technology and digital capabilities to the financial services industry.
Currently, Vara lnfotech provides these services to ICICI Bank. As a part of this strategic engagement, Wipro
will absorb about 3,800 employees of Vara lnfotech along with its existing contracts, facilities and assets, on a going concern basis, through a business transfer agreement for an all cash consideration of Rs 321 Crores and will provide these services to ICICI Bank from September 2019.
The revenues generated by this business in the last financial year (FY19) was Rs 221.5 crores. This transaction is expected to be completed during the quarter ending September 30, 2019 and is subject to customary closing conditions.