WeP acquires Select Technologies

After buying 76 percent stake in Select Technologies, Wipro ePeripherals Ltd will acquire all of Select's networking and security solutions

WeP Peripherals Ltd (formerly known as Wipro ePeripherals Ltd) has acquired over 76 percent stake in Select Technologies, a Bangalore-based networking and security company. Under the terms of the agreement signed on November 6, WeP will acquire all of Select's networking and security solutions. A line by line consolidation of Select's revenues is also on cards.

In fiscal 2001-02, WeP registered revenues of Rs 210 crore while Select recorded a turnover of Rs 12 crore. Post takeover, 100 percent of Select's revenues and the entire headcount will now register with WeP. Select, however, is likely to continue as a separate operational subsidiary.

Set up in 2000 as the breakaway peripherals division of Wipro Infotech, WeP's topline revenues have largely come from its printers. Over the last year, it had been seeking growth in the storage, personal mobility/convenience and communications sectors. The company recently made a foray into the networking market with the launch of WeP branded routers and switches. The Select takeover is expected to strengthen the company's presence in this sector.

“As a result of the acquisition, WeP will now be able to offer customers exceptional reliability, superior price-performance, and investment protection across an even broader line of networking solutions,” says Deepak A Chari, GM (Finance and Business Development), WeP Peripherals.

WeP plans to leverage on Select's already established distribution network of nearly 1,000 resellers and 40 employees. "We have around 12,000 authorized resellers spread across the country. With an additional 1,000 resellers from Select, we will be an even stronger channel-focused company," adds Chari. However, WeP and Select currently have no plans for revamping their respective internal structures

SUNILA PAUL