Indian leading software company Wipro Technologies and Japan's Oki Electric Industry announced on Friday their strategic partnership in the area of design services for the semiconductor market.

As part of this partnership, Wipro has signed a definitive agreement to acquire Oki Techno Center Singapore (OTCS) including its own Intellectual Property Rights in an all cash deal over a period of one year, according to a press release.

Wipro will also establish a dedicated Development Center for OKI, the release said.

OTCS is a wholly owned subsidiary of OKI focused on wireless design and has demonstrated innovative capabilities in Radio Frequency (RF) and baseband design.

The development center set up by Wipro will enable OKI to utilize design resource efficiently and enhance product development capabilities, which will enable OKI to expand its semiconductor business and increase its competitive edge in designing semiconductor products in the global market.

"We have been looking for a global partner to improve our efficiency in semiconductor design through outsourcing, as we focus on improving our core designing capabilities," said Masahiko Morioka, President of Silicon Solutions Company at Oki Electric Industry.

Wipro is a leading solutions provider in the semiconductor design services space and has been strengthening its presence by complementing its digital expertise with analog and RF skills.

"The acquisition of OTCS is a significant step in our plans to strengthen the leadership in design services in the RF and baseband technology space. The acquisition also provides a solid base for addressing the large market in Japan and East Asia," said Ramesh Emani, President of Wipro's Telecom and Product Engineering Solutions Division.

The entire transaction is expected to be closed during the next one month. The closing of the transaction is subject to customary closing conditions and regulatory approvals.