Wipro acquires UK-based Capco for 10,500 crore
Indian IT major will close its biggest ever buyout deal by June
New Delhi: IT services major Wipro on Thursday said it has signed an agreement to acquire London-headquartered Capco, a global management and technology consultancy, in a $1.45 billion (over Rs 10,500 crore) deal.
This will be the biggest ever acquisition by Wipro. In a regulatory filing, Wipro said the acquisition will strengthen its position as a consulting and IT services provider to the Banking, Financial Services and Insurance (BFSI) sector, provide access to marquee BFSI clients and create a large global financial services practice for the company with a strong consulting footprint.
Clients will benefit from a combination of Wipro's capabilities in strategic design, domain and consulting, digital transformation, cloud, cybersecurity, data and IT services with Capco's deep domain and consulting capabilities across banking, payments, capital markets, insurance, risk and regulatory offerings, it added.
The transaction is expected to be completed during the quarter ending June 30, subject to requisite regulatory approvals and customary closing conditions.
Founded in 1998, Capco works with more than 100 clients and has many long-standing relationships with the world's leading financial institutions. It has over 5,000 consultants based in more than 30 global locations across 16 countries.
The company's consolidated revenues for the year ended December 2020 was $720 million. "We are very excited to welcome Capco's admirable leadership team and employees, and global clients, to Wipro. Together, we can deliver high-end consulting and technology transformations, and operations offerings to our clients.
"Wipro and Capco share complementary business models and core guiding values, and I am certain that our new Capco colleagues will be proud to call Wipro home," Wipro CEO and Managing Director Thierry Delaporte said. Capco CEO Lance Levy said the companies will together 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.
"We look 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," Levy said.
The deal will require anti-trust approvals under the competition laws of the US, Germany, Canada, Brazil and Austria along with other regulatory approvals, the filing said.