Wipro to sell hosted data centre business to Ensono for $405 million

Software-services major Wipro on Wednesday said that it will sell its hosted data center services business to U.S.-based IT-services company Ensono for $405 million.

As part of the deal, Bengaluru-based Wipro will sell its eight data centers, and transfer over 900 employees from its data center services business to Ensono. Wipro and Ensono have also signed a long-term partnership agreement, and as part of it, Wipro will make an investment of $55 million in the combined entity.

“This partnership will enhance the global data center footprint and expand the available talent pool which will give us economies of scale and allow us to offer end-to-end capabilities in the infrastructure space, better than ever before,” said Kiran Desai, senior vice president, global infrastructure services, Wipro Limited.

The hosted datacenter services business is one of the three businesses that became a part of Wipro when it acquired Infocrossing Inc in 2007. The other two businesses -- Medicare & Medicaid services in the health insurance space and ERP implementation services -- have been integrated with other Wipro businesses and are not part of this divestment, Wipro said in a release.

The deal is expected to ramp up Ensono’s geographic footprint and service capabilities. Ensono is a portfolio company of Boston-based private equity firms Charlesbank Capital Partners and M/C Partners.

“This is the third acquisition in less than three years for Ensono. We are increasing our geographic presence by expanding our data center operations in Germany, U.K. and the U.S., as well as establishing an operational presence in India,” said Jeff VonDeylen, CEO, Ensono.

The deal is expected to close in the quarter ending June 2018, subject to regulatory approvals, Wipro said.