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ATCO Forms Strategic Alliance With Global IT Leader Wipro [Global Data Point](Global Data Point Via Acquire Media NewsEdge) ATCO and Wipro have agreed to enter into a series of Master Services Agreements for a period of 10 years that will see Wipro provide the complete suite of IT services to ATCO. The transaction provides for continuity of employment for existing ATCO I-Tek personnel who will continue to support the IT needs of ATCO as employees of Wipro. Wipro has experience in delivering IT solutions across a variety of industries around the world and is well suited to meeting ATCO's global technology needs. The decision to outsource ATCO's IT services was due in part to increasing regulatory challenges faced by ATCO's utility companies when applying to the Alberta Utilities Commission to include IT costs, provided by ATCO I-Tek, for recovery in customer rates. By competitively outsourcing its IT services, ATCO is addressing the concerns expressed by the Alberta Utilities Commission. "This alliance ensures ATCO can focus on growing our core businesses of structures and logistics, utilities and energy while Wipro delivers the strategic and innovative IT solutions required to support our global operations," said Brian Bale, Senior Vice-President %7E Chief Financial Officer, ATCO. "Wipro's deep domain capability and technology leadership will also ensure we can continue to deliver cost-effective services to our customers." "We are delighted to collaborate with ATCO in this transformational initiative," said Anand Padmanabhan, Chief Executive - Energy, Natural Resources, Utilities, Wipro Ltd. "Our focus will be to enable ATCO to enhance their competitiveness through the deployment of strategic solutions and efficient delivery of IT services. We are confident that our domain expertise combined with the enhanced talent pool will help us support ATCO's growth. We have traditionally had a strong position in the Utilities space in Europe and this engagement provides momentum to our business in Canada and Australia. The alliance with ATCO enhances our capability to create, nurture and tap local talent to power our growth journey in Canada." Wipro will also acquire all the shares of ATCO I-Tek, including current contracts and employees, as well as the assets of ATCO I-Tek Australia as valuable resources to provide the IT services ATCO requires and to serve as a launching point for Wipro's expansion in Canada and Australia. ATCO I-Tek will continue to operate as a subsidiary under Wipro. The sale is expected to close in the third quarter of 2014 subject to customary closing conditions. Aggregate proceeds from the sale are expected to be approximately CAD $210 million. (c) 2014 GlobalData Provided by SyndiGate Media Inc. (Syndigate.info). |