Wipro a market performer: Prabhudas Lilladher

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Wipro a market performer: Prabhudas Lilladher

Prabhudas Lilladher has maintained a market performer rating on Wipro

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Prabhudas Lilladher has maintained a market performer rating on Wipro .

Prabhudas Lilladher report on Wipro:

Wipro Technologies announced the acquisition of the Nasdaq-listed Infocrossing and its subsidiaries. The USD 463 million all-cash deal values each share of Infocrossing at USD 18.7 (v/s the last traded price of USD 17.7) and is expected to be closed by November '07.

Infocrossing has a significant presence in the Infrastructure Management Services (IMS) space in the US. Wipro hopes to leverage this to improve its chances of winning large IT deals in which an IMS component is almost always a requirement. Prima facie, it appears that, at a valuation of 12x CY07E EV/EBITDA, Wipro has probably made a reasonable deal in this acquisition.

Since the acquisition will be consummated by November '07, we do not expect it to have any real impact on Wipro's financials this fiscal (marginal EPS dilution of less than 1% likely). Maintain Market Performer rating.