March 16, 2018 — Hughes Hubbard participated as legal advisor to global information technology company Wipro in the sale of its hosted data center services business to IT services company Ensono for $405 million.
Wipro announced the deal on March 14 and said it will transition eight data centers and more than 900 employees of its hosted data center services business to Ensono. Wipro also signed a long-term partnership agreement with Ensono to address the hybrid IT requirements of Wipro’s new and existing customers. As part of the deal, which is likely to close by the end of June, Wipro will pay $55 million to acquire a minority stake in Ensono.
“As we embrace our strategy of focusing on newer digital areas of spend, our strategic investment and partnership with Ensono will enable us to remain committed to meeting the hosted data center services requirements of our customers,” said Kiran Desai, senior vice president of global infrastructure services at Wipro.
Wipro has owned the hosted data center services business since its acquisition of Infocrossing Inc. in 2007. The other two businesses Wipro picked up in that acquisition – Medicare & Medicaid services in the health insurance space and ERP implementation services – are not part of this deal.
Ensono, a hybrid service provider that offers solutions for both on-premise and cloud, is a portfolio company of Boston-based private equity firms Charlesbank Capital Partners and M/C Partners.
With offices in Bangalore, India and Somerset, New Jersey, Wipro has more than 160,000 employees serving clients on six continents. HHR has advised Wipro in two other matters this year. On March 1, Wipro agreed to purchase a minority stake in cybersecurity firm Denim Group. In January, Wipro acquired a minority stake in marketing services company Harte Hanks.
The deal drew coverage in The Deal, Fortune India Magazine, VC Circle and other news outlets.
Chuck Samuelson led the deal team, which included Robert Bell, Andy Braiterman, Steve Greene, Shane Stroud, Matt Syrkin, Paul Yakulis, Jim Delaney, Carol Remy, M. Shams Billah, Justin Cohen, Kristin Millay, Jeffrey Ng, Steven Perelman, Dena Smith and Jack Tanenbaum.