7/24/2002 - Wipro Limited (NYSE:WIT) today announced that its Board of Directors have approved an agreement to acquire 100% stake in GE Medical Systems Information Technologies Private Limited. The consideration for the transaction is US$5.73 million. As an integral part of the transaction, Wipro also acquired Healthcare Information Systems Intellectual Properties owned by GE Medical Systems, USA. Upon completion of the transaction, the company will be renamed as Wipro Healthcare IT Limited.
GE Medical Systems Information Technologies Private Limited is a leading provider of Healthcare IT services in India and Middle East. The company's Hospital Information System package - HIRepS - is a comprehensive ERP Software for hospital management integrating all departments and their various functions within the hospital. The product is installed in over 20 leading hospitals including Apollo group, Fortis Healthcare, Manipal group and Wockhardt in India and Saudi German hospital in the Middle East.
GE Medical Systems Information Technologies Private Limited was incorporated in October 2000 as a joint venture between GE Medical Systems (USA) and Citadel Health Limited to develop Software packages and offer software and solutions in the areas of Healthcare and Hospital Information System. For the year ended March 2002, GE Medical Systems Information Technologies Pvt. Ltd. had Revenue of Rs. 110 million ($2 million), with a team size of 130 professionals.
Continuing the strong tradition of partnership with Wipro, GE Medical Systems will distribute the Healthcare IT products, acquired now by Wipro Limited, into the markets of Indonesia, Thailand and Middle East, and Wipro GE Medical Systems Limited will continue to distribute these products in South Asia.
Mr. D A Prasanna, Vice Chairman, Wipro Limited and CEO, Wipro Healthcare and Life Science said, "In the first 90 days of operations as a separate business segment, our progress is in line with our plan. We have acquired 4 global customers including one for Clinical Process Outsourcing. With the acquisition of GE Medical Systems Information Technologies Limited, we have taken our first step in growing inorganically to achieve our vision of being a leading global player in Life Science and Healthcare IT services.
"We are pleased to welcome the GE Medical Systems Information Technologies Private Limited team into the Wipro family. The depth of domain skills they bring will help us deliver superior solutions to our global customer. The Intellectual Properties acquired from GE Medical Systems USA, provides us the platform to expand our offerings in the Indian and Asia Pac Healthcare IT market with proven product."
Mr. Vishweshwar Konda, Managing Director of GE Medical Systems Information Technologies Private Limited, added, "Our leadership position in Hospital Information Systems is further strengthened with this strategic acquisition. Leveraging Wipro's strength in Software quality processes and global reach, we can now upgrade our solutions and offer them to the global market and enhance our business mode l and profitability."
The acquisition has received required internal approvals of the respective companies and is subject to various closing conditions and statutory approvals.
Wipro Healthcare and LifeScience was set up as a separate business segment of Wipro Limited in April 2002 to address the requirements of the Bio-IT market, where information technology converges with life sciences. This business offers solutions to hospitals and health insurance companies for efficiencies and compliance in work flows and reduce drug discovery cycle time for Life Sciences companies, in India and across the globe.
About Wipro Limited:
Wipro Limited is the first P CMM Level 5 and SEI CMM Level 5 certified IT Services Company globally. Wipro provides comprehensive IT solutions and services, including systems integration, Information Systems outsourcing, package implementation, software application development and maintenance, and research and development services to corporations globally.
In the Indian market, Wipro is a leader in providing IT solutions and services for the corporate segment in India offering system integration, network integration, software solutions and IT services. Wipro also has profitable presence in niche market segments of consumer products and lighting. In the Asia Pacific and Middle East markets, Wipro provides IT solutions and services for global corporations.
Wipro's ADSs are listed on the New York Stock Exchange, and its equity shares are listed in India on the Stock Exchange - Mumbai, and the National Stock Exchange, among others.
For more information, please visit our websites at www.wipro.com and www.wipro.co.in
Forward-looking and cautionary statements:
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which Wipro makes strategic investments, withdrawal of fiscal governmental incentives, political instability, war, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. Wipro may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. Wipro does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.
For further information please contact:
Tel : +91-80- 844 0251
Fax : +91-80- 844 0256
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