Indian IT services major Wipro Technologies has made its largest-ever acquisition in the company’s history. In a regulatory filing, the Bangalore-based firm said it has signed an agreement to acquire Capco, a London-based consulting firm, for US$1.45 billion.
The privately-held British firm operates in the banking and financial services space and has a headcount of 5,000, spread over 30 locations in India, the US, UK, France, Germany, Poland, Slovakia, Austria, Poland, Switzerland, Brazil, Singapore, Malaysia and Hong Kong.
Wipro clarified that Capco will operate as a separate unit. The acquisition will be through a cash transaction and is expected to be completed during the quarter ending June 30, 2021, subject to regulatory approvals.
Capco provides digital, consulting, and technology services to the global banking and financial services industry and has a client portfolio of over 100 organizations. It also services clients in the energy and commodities trading sector. Wipro claims that with this acquisition it will be “one of the largest providers of integrated, end-to-end consulting, digital, cloud and IT transformation services at scale.”
Wipro CEO Thierry Delaporte said, “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.”
Capco CEO Lance Levy said, “We are incredibly excited to join our new colleagues at Wipro. Together, we will 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.”
Wipro hopes to combine its capabilities in strategic design, digital transformation, cloud, cybersecurity, IT and operations services with Capco’s domain and consulting strength.
Ever since Delaporte, a French national and a CapGemini veteran, took charge as Wipro’s CEO last July, the company has increased its focus on Europe and made a series of acquisitions. They include German wholesaler Metro AG’s IT unit ($700 million), engineering services firm Eximius Design ($80 million) and Encore Theme Technologies Private Ltd, a software-as-a-service firm ($13 million). Europe is Wipro’s second-largest market and contributes 25.2% to its total revenue.