Wipro to acquire global tech company Capco for $1.45 bn

Wipro has agreed to acquire London-based consultancy firm Capco for $1.45 billion in its biggest purchase. The acquisition will make Wipro one of the largest end-to-end global consulting, technology and transformation service providers to BFSI. Capco employs 5,000 consultants and will help the company add banking, insurance and financial services clients, Wipro said. The transaction is expected to close in the quarter ending June 30.

Capco is a good addition for Wipro. It strengthens Wipro’s financial services business and adds scale to its UK and European operations. Both have been targeted by the Wipro chief executive officer as areas to be strengthened.

Capco provides digital, consulting and technology services to financial institutions in the Americas, Europe, and the Asia Pacific. The deal is an all-cash one and will be funded through internal accruals and debt. The acquisition is subject to customary closing conditions and regulatory approvals and is expected to close in the June quarter.

Rishad Premji, chairman, Wipro, said: “With this deal we are joining select service providers that bring end-to-end consultative, digital cloud, and IT-driven solutions at scale to our customers. This deal will bring scale to Wipro’s BFSI (banking financial services, and insurance) play,” said Premji.

Thierry Delaporte, CEO said, “This deal is a growth accelerator for Wipro. We have a complementary customer base and it gives an immediate access to 30 BFS (banking and financial services) clients who can significantly enhance access to industry solutions.”

Lance Levy, CEO of Capco, said, we are 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. We look forward to leveraging the complementary capabilities and similar cultures of both companies.