India: Wipro picks 26% stake in IT consulting firm Drivestream

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India’s third largest software services firm Wipro is acquiring 26 per cent stake in IT consulting firm Drivestream for a consideration of nearly Rs 5.2 crore ($809,690), it announced on Tuesday.

The deal will see Wipro acquiring 19,679 preferred stock and 27,865 common stock, equating to 26.1 per cent of Drivestream’s equity (on a fully diluted basis), it said in a BSE filing.

Established in 2001, Drivestream is privately held entity and has a workforce of around 73 employees in the US. The company clocked revenues of $20.5 million in 2016.

“The investment gives Wipro and Drivestream’s customers the ability to benefit from Drivestream’s market leading Oracle cloud HCM and Oracle cloud ERP solutions and Wipro’s end to end Oracle services,” the filing said.

“Wipro’s global customer base in the enterprise market coupled with Drivestream’s established credentials of successful cloud implementations in the mid-market will offer unparalleled value to the customers,” it added.

Wipro had earlier in 2015 invested $5 million in Drivestream for an undisclosed minority stake.

Drivestream is a management and IT consulting firm specializing in Oracle Cloud Services (HCM, ERP, Planning & Budgeting), and on-premise People Soft application implementation, upgrades, enhancements and ongoing support.

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