Citi today announced the successful completion of the sale of Citi Technology Services Ltd. (India), the India-based captive provider of information technology services and solutions to Citi entities worldwide, to Wipro Technologies, the global IT services business of Wipro Limited (NYSE:WIT), for all cash consideration of $127 million.
As part of the transaction, Wipro and Citi have signed a Master Services Agreement for the delivery of Technology Infrastructure Services (TIS) and Application Development and Maintenance (ADM) services for a period of six years. The agreement provides for the delivery of at least $500 million in service revenues over the period of the contract.
The transaction is consistent with Citi's efforts to improve operating leverage while the Company focuses on its core banking competencies. Further, it will reduce Citi's total headcount by approximately 1,700 employees, all of whom are located in India.