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Wipro to divest hosted data center services biz for $405M

Wipro Ltd. has agreed to divest its hosted data center services business to Ensono for $405 million.

Wipro will transfer eight data centers and more than 900 employees of its hosted data center services business to Ensono. Through the acquisition, Ensono will double in size, diversify its client portfolio and increase its annualized revenue to be in excess of $550 million.

Subject to closing conditions and regulatory approvals, the deal is expected to close in the quarter ending in June.

The two companies also signed a long-term partnership agreement to jointly address the hybrid IT requirements of Wipro's new and existing enterprise customers. As part of the agreement, Wipro will make a strategic investment of $55 million in Ensono's combined entity.

Ensono is a portfolio company of Charlesbank Capital Partners LLC and M/C Partners and provides hybrid IT services, from cloud to mainframe, that enables clients to digitally transform their business.

Jefferies LLC acted as financial adviser to Ensono and Credit Suisse Securities (USA) LLC acted as the sole financial adviser to Wipro. Goodwin Procter LLP and Ropes & Gray LLP acted as legal advisers to Ensono, and Hughes Hubbard and Reed LLP (for the U.S.), and DLA Piper (for Europe) were legal advisers to Wipro for this transaction.