Wipro buys GE Med’s IT arms for $6m

WIPRO has made its first acquisition, albeit a small one. And contrary to popular expectations, the acquisition is in the healthcare and life sciences segment and note in software services.

Wipro’s acquisition of a 100% stake in GE Medical Systems Information Technologies (GEMS-IT) for $5.7m will help kick-start its newly formed healthcare and life sciences division. As part of this deal, Wipro has also acquired healthcare information systems’ intellectual properties owned by GE Medical Systems of US. On completion of the transaction, the company will be renamed Wipro Healthcare IT. GEMS-IT was incorporated in October 2000 as a joint venture between GE Medical Systems (US) and Citadel Health of the Apollo Group to develop software packages and offer software solutions in the areas of healthcare and hospital systems.

For the year ended March ’02, GEMS-IT had revenues of Rs.11 crore, and employs a team of 130 professionals. This means that Wipro is paying 2.5 times the revenues to acquire the company.

Addressing a press conference here on Thursday, DA Prasanna, vice-chairman of Wipro & CEO of Wipro Healthcare and Life Science – who incidentally came back to Wipro from GEMS India – said that in the first 90 days of operations as separate business segment, "our progress is in line with our plan. We have acquired four global customers including one for clinical process outsourcing". The division was formed by the company by shifting some of the related activities from Wipro Technologies and bringing in Wipro Biomed into its fold.

"With this acquisition of GEMs-IT, we have taken our first step in growing inorganically to achieve our vision of being a leading global player in life science and healthcare IT services". Mr Prasanna added.

GEMS-IT is a provider of healthcare IT services in India and the Middle East. The company’s hospital information system package HIRepS is ERP software for hospital management, integrating all departments and their various functions within the hospital. HIRepS has been installed in over 20 hospitals including Apollo Group. Fortis Healthcare, Manipal Group and Wockhardt in India and Saudi German Hospitals in the Middle East.

Commenting on the acquisition, Wipro chairman Azim Premji said, "for us, the 130 trained manpower is strategic and so is the satisfied customer base, both in India and the Middle East, which we can exploit as a good referral point for selling healthcare information systems and solutions in the Rs.75-100 crore Indian market."

"Wipro would be exploiting the depth of domain knowledge and skills to deliver superior solutions to our global customers. The IPR acquired from GE Medical Systems, US provides us the platform to expand our offerings in the Indian and Asia Pacific healthcare IT market with proven products", said Mr Prasanna. Vishweshwar Konda, MD of GEMS-IT will continue as MD and CEO of the new entity. •

Back | Back To Top

BD India to launch hi-tech syringes

BD India, a subsidiary of the 54-billion US laboratory and medical systems major BD, is launching a range of new generation hypodemic syringes, including a finer-gauge needle for diabetic patients, auto disable injections and pre-filled injections, in the domestic market.

The foremost among the new launches is a finer gauge needle for diabetic patients, who need to take an insulin shot on a daily basis. To be launched under the BD Ultra-Fine brand, the needle measures 30G and is 8mm long and is much finer and shorter than the normal 29G, 12.7mm needles.

"It is virtually painless and so it helps lower the needle phobia of the diabetes patients", Rakesh Kumar, general manager (medical systems), BD India said. BD Ultra-Fine has been priced at Rs.67.50 for a pack of 10 syringes. The product will add to the company’s diabetic basket, which includes insulin syringes, pen needles and lancet needles. Besides, the company is also launching a new generation syringe which uses auto disable technique. "This product is aimed at immunisation use, as vaccination primarily caters to children below five years of age", Mr Kumar said. Disposable syringes currently used for immunisation do not protect against re-use, he said.

Back | Back To Top

In the News...

Archives