Wipro acquires global tech giant company Capco for $1.45 bn
Wipro has signed an agreement to buy London-based Capco, a global management and technology consulting company, for $ 1.45 billion in its largest acquisition.
Capco provides digital consulting and technology services for financial institutions for the US Europe and Asia Pacific.
The deal is an all-cash and will be funded through internal fees and loans. This acquisition is subject to closing conditions and regulatory approval and is expected to close in the June.
Rishad Premji, president of Wipro, said: “With this deal we are joining select service providers who bring end-to-end consultants, digital cloud and IT-driven solutions to their clients. Premji said that the deal would fit the scale of Wipro (banking financial services and insurance).
As per Chief Executive Officer Thierry Delaporte, The deal is a growth accelerator for Wipro. We have a complementary customer base and provide immediate access to 30 BFS (banking and financial services) customers that can significantly enhance industry solutions. "
Capco CEO Lance Levy said that they are excited to be joining our new partners at Wipro. Together, we will introduce bespoke transformative end-to-end solutions, driven largely by innovative technology, to create a new leading partner for the financial services industry.
While analysts tracking the company said it was a bold move, many said it could be an effort to increase its revenue.
“Capco is a good addition to Wipro. Wipro's financial services business will be strengthen by this and adds scale to its UK and European operations. Both have been targeted by the Chief Executive Officer of Wipro to strengthen the sectors. This indicates that Wipro is taking an acquisition currency under it and is likely to add more scale and capacity through acquisitions over the next one or two years, ”said Everest Group CEO Peter Bender-Samuel.
The acquisition would make Wipro one of the largest global consulting, technology and transformation service providers for the banking and financial services industry as the company said. It will add revenue of $ 700 million and see 5,000 technology and business advisors joining Wipro.
Darter Mishra, Senior Research Director, DD Mishra, DD Mishra said that the acquisition of Wipro to complement advisory organizations can help drive better non-linear growth and become a transformational player.