Wipro said it has completed the sale of its hosted data center services business for $399 mln as announced three months ago.
The business, consisting of Wipro Data Centre and Cloud Services, Inc. (USA), a portion of data center business in Germany and UK and certain employees in India, was sold to to Ensono, a hybrid IT services provider.
A data center is where companies keep their data, and increasingly, their software applications as well. A ‘hosted’ data center service refers to a player like Wipro creating a mega data center and offering portions of it to other companies, so that they don’t have to set up such facilities from scratch.
In March, it was reported that eight data centers and about 900 employees will be transferred to Ensono as part of the transaction.
Wipro entered the hosted data center businesses in when it acquired Infocrossing in 2007. Three years later, it acquired Citi’s data center in Dusseldorf, Germany.
More and more corporations are setting up data centers to take advantage of cloud computing solutions and to keep up with the increasing requirements for both computing power and data storage.
Wipro said the sale of the business will be visible in numbers for the current quarter.
“The divestment of data center operations in India is likely to be completed during the quarter ending September 30, 2018, subject to receipt of requisite regulatory approvals and customary closing conditions,” it added.
“Upon completion of such divestment, the Company will receive the remaining consideration of USD 6 million from Ensono,” it said.
It also said that Wipro LLC, a wholly owned subsidiary of Wipro Limited, has completed the acquisition of 10.2% stake in Ensono Holdings, LLC on June 27 , 2018.
Under the deal, Wipro was supposed to invest $55 mln in the company.