Wipro Ltd, India's third largest IT firm, said on Thursday that it has signed an agreement to buy the US-based technology firm HealthPlan Services in an all-cash deal worth $460 million. This acquisition marks Wipro's third buyout in less than three months.
The Bengaluru-based IT major has made four acquisitions since April 2015, indicating that the company is taking the mergers and acquisition route to boost its revenue to $15 billion by 2020.
Wipro has invested more than $760 million in acquisitions since Abidali Z Neemuchwala, who was recently promoted to chief executive of the company, joined the firm in April last year.
In December last year, Wipro bought Viteos Group, a BPaaS provider for the Alternative Investment Management Industry, for $130 million.
The acquisitions also comes at a time when the company's revenue is expected to grow at the slowest pace since 2009-10.
"The partnership with HealthPlan Services positions Wipro to participate in the shift of the US health insurance industry towards a consumer-centric business model. HealthPlan Services strengthens Wipro's position in the health insurance exchange market while offering synergies with Wipro's presence in the Managed Medicare and Commercial Group Insurance markets," Jeffrey Heenan Jalil, Senior Vice President & Head-Healthcare Life Sciences and Services, Wipro Limited, said in a statement.
Wipro has not disclosed the details on how it funds the transaction. The company had cash reserves of $4.63 billion at the end of December 2015.
Founded in 1970, HealthPlan Services, which offers solution to health insurance firms, posted a revenue of $223 million for the calendar year 2015.
Wipro expects to complete the acquisition in the next 60 to 90 days.