SAIC (NYSE: SAI) has a deal in place to sell Wipro (NYSE: WIT) operations focused on “specialized IT services to oil and gas companies.”
CEO Walt Havenstein announced the firm’s intent to move the units during a financial call last week.
The firm is selling its U.S. oil and gas IT services and subsidiaries in the United Kingdom (SAIC Limited), France (Science Applications International, Europe S.A.R.L.), India (SAIC India Private Ltd) and the Middle East (SAIC Gulf LLC).
“The sale of these operations will enable SAIC to better focus on our strategic growth areas, including market segments in the energy sector, such as smart grid, renewable energy implementation, and energy efficiency, where we have successfully built our business through organic growth and acquisitions, ” said Walt Havenstein, SAIC chief executive officer. “To grow our oil and gas IT services business would have required investments in areas outside our strategic focus, including increasing our off-shore capabilities. Wipro is ideally suited to maximize the value of this profitable business. This transaction will provide the best result for the employees and customers of these operations.”
Joe Craver, president of SAIC’s Health, Energy, and Civil Solutions Group, indicated the move would help the firm focus its efforts.
“We’ve consolidated all commercial utility information and technology capabilities together with our capabilities in energy engineering and utility consulting to comprehensively address the increasing technical, regulatory and business challenges associated with improving the security, reliability and efficiency ofour nation’s energy delivery systems, ” he said.
