DSIJ Mindshare

Wipro buys UK firm Capco to strengthen its BFSI segment
Abhinav Lahoti
/ Categories: Trending, DSIJ News

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.  

---

Previous Article Weekly Economic Update
Next Article IPO Analysis: Easy Trip Planners
Print
1064 Rate this article:
5.0
Please login or register to post comments.
DALAL STREET INVESTMENT JOURNAL - DEMOCRATIZING WEALTH CREATION

Principal Officer: Mr. Shashikant Singh,
Email: principalofficer@dsij.in
Tel: (+91)-20-66663800

Compliance Officer: Mr. Rajesh Padode
Email: complianceofficer@dsij.in
Tel: (+91)-20-66663800

Grievance Officer: Mr. Rajesh Padode
Email: service@dsij.in
Tel: (+91)-20-66663800

Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051, Maharashtra.
Tel: +91-22-26449000 / 40459000 | Fax : +91-22-26449019-22 / 40459019-22 | E-mail : sebi@sebi.gov.in | Toll Free Investor Helpline: 1800 22 7575 | SEBI SCORES | SMARTODR