Business process services (BPS) provider Wipro has signed an agreement to acquire Viteos Group for a purchase consideration of $130 million.
Viteos provides business process as a service for the alternative investment management industry, offering customised straight-through processing (STP) and integrated post-trade operations across asset classes, currencies and structures for managers in the US, Europe and Asia.
Founded in 2003 ands based in Somerset, New Jersey, the firm also offers shadow accounting services and other middle- and back-office outsourcing solutions. Its proprietary platform offers transformation and integration of post-trade operations, and can be used to launch solutions across other areas of capital markets.
Wipro provides BPS to global investment banks and specialises in platform-led transformations and utility offerings in reconciliation, know-your-client, and middle-office and asset servicing. The acquisition is intended to add additional capabilities to Wipro's buy-side offering.
While retaining its own branding, Viteos will have the backing of Wipro to expand to the wider asset management industry. The Viteos management team will continue to drive the platform-based outsourcing business services.
According to Shankar Iyer, CEO and founder of Viteos Group, the decision was based partly on Wipro’s ability to expand Viteos’s market reach while also retaining its “entrepreneurial characteristics”.
Iyer said: “We are excited to be part of a trusted global leader and the transaction is a further recognition of our value and validation of our commitment to deliver excellence through our investments in people, process and technology."
Nagendra Bandaru, senior vice president and head of BPS at Wipro, said: "We welcome Viteos employees to the Wipro family. We are excited to join hands with Viteos and expand our capital markets portfolio in fund accounting services and enhance our BPS capabilities."
Shaji Farooq, president and CEO of finance solutions at Wipro, added: "The IT services industry is moving to an 'as-a-service' model, and the future of BPS is going to be business processes as a service. Our strategy is to invest in industry vertical platforms, which will provide platform-based services to our clients in transaction/outcome-based pricing models. Viteos will further our strategy in the capital markets domain."
The acquisition is subject to regulatory approval and customary closing conditions, and is expected to be completed in Q1 2016.
