Wipro ups consulting play, to buy UK’s Capco for $1.45 billion

Our Bureau Bengaluru | Updated on March 04, 2021

Rishad Premji, Chairman, Wipro Ltd

Deal will make firm one of the largest end-to-end global solutions providers to financial sector

Wipro Ltd on Thursday said it will acquire global management and technology consultancy company, the UK-based Capco for $1.45 billion, the biggest acquisition in its history.

The acquisition will make Wipro one of the largest end-to-end global consulting, technology and transformation service providers to the banking and financial services industry. “We had earlier stated that we will transform the company into a bolder Wipro, more risk-taking. This acquisition fits well into that strategy,” Rishad Premji, Chairman, Wipro, told analysts during a call.

Premji, who took over as the chairman of Wipro Ltd in July 2019, said Capco will bring in significant scale to its businesses. The acquisition is expected to add $700 million to Wipro’s revenues.

Thierry Delaporte, CEO and Managing Director, Wipro Ltd, said the acquisition will be funded through a mix of internal cash and debt. Capco acquisition will add 5,000 consultants to be spread across 30 global locations. The London-headquartered Capco, a global management and technology consultancy, provides digital, consulting and technology services to financial institutions in the Americas, Europe and the Asia-Pacific.

Lance Levy, CEO, Capco, said, “Together, we will offer bespoke transformational end-to-end solutions, now powered by innovative technology at scale, to create a new leading partner to the financial services industry.” He said Capco looks forward to leveraging the complementary capabilities and similar cultures of both companies to drive industry change and offer exciting opportunities for both our clients and our people.”

The acquisition is subject to customary closing conditions and regulatory approvals and is expected to close in the quarter ending June 30, 2021.

Earlier acquisitions

Some of Wipro’s earlier acquisitions include: Metro AG’s IT unit in December 2020 for over $700 million; Encore Theme Technologies in October 2020 for $13 million; Salesforce-partner 4C based in Belgium for $79 million; and Infocrossing in August 2007 for $600 million, according to data intelligence platform, Tracxn.

Published on March 04, 2021

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