Wipro buys UK firm Capco to strengthen its BFSI segment
In its largest acquisition ever, Wipro Limited will take over London-based global management and tech consultancy, Capco for a consideration of US $1.5 billion dollars to bolster its presence in the banking, financial services & insurance (BFSI) space.
The deal will help Wipro to gain a strong consulting footprint for its tech services. The deal, signed under the newly appointed CEO-Thierry Delaporte, would help Wipro to gain a strong consulting footprint for its tech services. The company demonstrates a desire to regain the lost momentum in the past few years. The all-cash deal is expected to be completed during the June quarter, subject to regulatory approvals & customary closing conditions. The transaction is expected to be financed through internal cash and debt.
Capco, founded in the year 1998, gives access to 30 new large BFSI clients. It has over 5,000 consultants, spread across 16 countries. It has a client base of more than 100 as well as many long-term relationships with leading financial institutions. It clocked revenue of US $700 million in the calendar year 2020.
Although revenue synergy and growth acceleration are the primary objectives of the acquisition, there are identified cost synergies to be realised post-integration as per Wipro.
On Friday, Wipro closed at a price of Rs 420.40, down by 4.20 per cent from its Thursday’s closing price of Rs 438.85 on BSE.