Wipro makes its biggest purchase with $1.45bn Capco acquisition
Wipro Ltd., an Indian software exporter, agreed to acquire Capco for $1.45 billion, in its biggest purchase to spur growth that’s been lagging behind local rivals.
London-based Capco employs 5,000 consultants and will help Wipro add banking, insurance and financial services clients, the company said in a filing to stock exchanges. The transaction is expected to close in the quarter ending June 30, the company said.
The purchase comes less than a year after the company controlled by billionaire Azim Premji hired Thierry Delaporte from Capgemini SE to help it regain ground it lost to rivals such as HCL Technologies Ltd. and Infosys Ltd. The purchase will help the Bangalore-based Wipro add 30 new clients.
“Although revenue synergies and growth acceleration are the primary objectives of the acquisition, there are identified cost synergies to be realized post integration,” Wipro said in a presentation.
Capco has an experienced executive team and over 5,000 world-class business and technology consultants based across more than 30 global locations supporting clients through their expert insights, entrepreneurial approach and focus on delivery excellence.
Wipro’s shares rose 0.8% to 438.8 rupees in Mumbai before the company unveiled the deal. The acquisition is subject to customary closing conditions and regulatory approvals and is expected to close in the quarter ending June 30, 2021.
The latest purchase is Wipro’s biggest since the company acquired Infocrossing Inc. for $548 million in 2007. Capco had revenue of $700 million in 2020, according to Wipro’s presentation.
Wipro, which was India’s third-largest software developer by sales and market value in March 2019, lost the spot to HCL Technologies a year later, according to data compiled by Bloomberg.
- with inputs from HT Correspondent