Wipro Ltd., an Indian tech exporter, agreed to acquire Capco for $1.45 billion, in its biggest acquisition to spur growth that’s been lagging behind local rivals.
Capco, headquartered in London, hires 5,000 consultants and will assist Wipro in gaining banking, insurance, and financial services to customers, according to a stock exchange filing. According to the firm, the transaction is expected to close in the quarter ending June 30th, this year.
The acquisition comes less than a year after billionaire Azim Premji’s company recruited Capgemini SE’s Thierry Delaporte to help it recover ground lost to rivals including HCL Technologies Ltd. and Infosys Ltd. Wipro, headquartered in Bangalore, will gain 30 new clients as a result of the acquisition.
In a presentation, Wipro said, “While revenue synergies and growth acceleration are the primary objectives of the acquisition, there are defined cost synergies to be realised post integration.”
Capco has an accomplished management team and over 5,000 world-class business and technology advisors located in over 30 global locations who advise clients with expert perspectives, an entrepreneurial mindset, and a commitment to implementation excellence.
Before the deal was announced, Wipro’s stock rose 0.8 percent to 438.8 rupees in Mumbai. The deal is scheduled to close in the second quarter of 2021, subject to customary closing conditions and regulatory approvals.
