IT services major Wipro today said it has acquired a minority stake in cloud applications systems integrator Drivestream for USD 5 million. Along with the US-based firm, the country's third largest software services firm will build an integrated Cloud Solutions stack for its customers.
"As part of this arrangement (acquiring minority stake), Wipro is investing USD 5 million in Drivestream Inc," it said in a statement. This is part of Wipro's strategic drive to actively participate in external innovation eco-system, for which the company has set up Wipro Ventures, a USD 100 Million fund focused on investing in disruptive start-ups, it added.
This investment will further extend Wipro's leadership in the Oracle application services space particularly in cloud applications, which is poised to see high growth with its disruptive value proposition, Wipro said. It gives Wipro and Drivestream's customers the ability to benefit from Drivestream's market leading Oracle cloud HCM and Oracle cloud ERP solutions and Wipro's end-to-end Oracle services, it added.
"Wipro's investment in Drivestream will fuel our ongoing efforts for continued creativity in the cloud service space. This strategic partnership with Wipro positions us for significant scalability both in the US and around the globe," Drivestream President and CEO Gopal Krishna said.