Here goes – On Tuesday it was announced that Wipro Ltd., India's third-largest software company is acquiring New Jersey based Infocrossing for $600 million. Wipro is paying almost 60 times Infocrossing's earnings for the last 12 months, which is considered very 'full' valuation by most analysts.Infocrossing posted revenue of $229.2 million last year, has five data centers in the United States, providing hosted and managed IT services. For long division connoisseurs’ that puts the value at 2.6X trailing revenues.Visa stuff – Recently Wipro got some heat from the US Congress for its use or Indian employees coming to the US to train with American customers. But don’t worry; now Wipro wants to recruit Americans, hire them, train them, and pay their college so they can build up its American business.The IT business is loaded with Tech Support. Frankly I find it is hard to believe that Wipro will not rely extensively on offshore tech-support. I would, but I also understand the PR game.It was not to long ago we were worrying about Japan buying America. At some time or the other it was Germany (remember Chrysler Corp.?), France or the Columbian drug lords. Now it’s India. Blame it on Canada, which by the way has some good and inexpensive tech-support firms.
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About Tom Millitzer
I am an M&A guy. I sell Hosting Companies. I want you to fulfill your dreams. If you are building your company or exiting for success...I want help you grow rich.
I started NCC International in 1994, we represented our first hosting company in 1997. NCC has completed over 400 assignments. If you are considering buying or selling you need to know me. I do not bite.
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