Wipro acquires London-based Capco for $1.45 billion
Wipro is acquiring London-based Capco (Capital Markets Company) for $1.45 billion in cash. Capco is a global management and technology consultancy providing digital, consulting and technology services to financial institutions in the Americas, Europe and the Asia Pacific.
For Bangalore-based Wipro, the acquisition will strengthen its position in the crucial banking, financial services & insurance (BFSI) vertical.
The transaction is expected to be completed during the quarter ending June 30, 2021, subject to requisite regulatory approvals and customary closing conditions. It will be financed through a mix of internal cash and debt.
Capco, which posted revenues of over $700 million in 2020, has more than 5,000 employees across the globe which includes the US, UK, France, Germany, Poland, Slovakia, Austria, Poland, Switzerland, Brazil, India, Singapore, Malaysia and Hong Kong.
In a regulatory filing after market hours, Wipro said the acquisition will provide access to marquee BFSI clients and create a large global financial services practice for the company with a strong consulting footprint.
According to Wipro, the acquisition will lead to a global financial services business of $3.2 billion from the current $2.5 billion with strong consulting & business transformation footprint. The combination of Capco’s consulting led expertise and Wipro’s technology offerings would position them well for large-scale transformation deals.
Domestic IT services firms such as Wipro have been witnessing positive growth since the onset of the pandemic as clients across industries have opted for digital transformation. For the December quarter of 2020, the BFSI segment contributed 30.5 per cent to its IT services revenues. During this period, the IT service revenues of Wipro stood at $2.07 billion.
“We are very excited to welcome Capco’s admirable leadership team and employees, and global clients, to Wipro... Wipro and Capco share complimentary business models and core guiding values, and I am certain that our new Capco colleagues will be proud to call Wipro home,’’ said Thierry Delaporte, CEO and managing director of Wipro.
Ahead of the announcement, shares of Wipro ended with gains of 0.78 per cent at Rs 438.85 on Thursday.