In one of the sizable domestic deals, digital transformation and IT services major Wipro Limited has bagged a strategic contract valued at $300 million from the ICICI Bank.
Under the contract, Wipro will offer a comprehensive suite of services to ICICI Bank for the next seven years, starting September 2019. Currently, Mumbai-based IT services firm Vara lnfotech provides these services to the ICICI Bank.
As 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 ₹321 crore. Vara Infotech has posted annual revenues of ₹221.5 crore druing last fiscal.
“This engagement (with ICICI Bank) will further strengthen our endeavor to provide differentiated technology and digital capabilities to the financial services industry,'' said Wipro in a statutory filing to the stock exchange on Wednesday.
Wipro already has a considerable presence in the global banking and financial services segment. The company offers solutions to banks by leveraging Wipro HOLMES, the company's Artificial Intelligence platform.
This transaction is expected to be completed during the quarter ending September 30, 2019 and is subject to customary closing conditions, said the company.