WIPRO acquires CAPCO for 1.45 billion dollar. This acquisition will help WIPRO expand business in Europe and Asia.
Wipro announced acquisition of London based consulting firm Capco from $1. 45 billions. This acquisition will make Wipro one among the most important end-to end global consulting, technology and transformation service provider to the banking and financial services industry. And this will help have access to 30 new large BFSI clients. New clients from banking, and insurances. This will increase Wipro margin 2% in first year and it will improve in future due to revenue and cost efficiency . Wipro believes there are significant synergies to be realized through cross-selling.
This is Wipro’s largest acquisition ever, will also give the Indian tech services giant a strong consulting footprint. The company can now patriciate in large transformational deals given consulting expertise. And more importantly its signals more aggressive go-to-market approach for Wipro.
Wipro aims to become the world’s largest consulting and tech service agency for the banking firms
Capco serves financial instructions across the America, Europe and Asia- pacific regions. And it is the largest acquisition COVID-19 led to surge in Capco makes96% of it’s revenue from Europe and north America. Capco which employs about 5,000 consultants and raised about $80m from investors 20 years ago.
TecMarketView analyst Duncan Aitchison acknowledged Wipro already generates 30 per cent of its global sales from the financial services sector.
Wipro said the acquisition creates a global financial services business of $3. 2 billion, up from the current $2. 5 billion, with a strong consulting and business transformation.
The words from the chairman of Wipro Rishad Premji says the Capco will bring us over $700 m in revenue& over 5000 consulting and domain specialists, Capco will bring significant scale to BFSI business. This deal will help to make Premji’s wealth of $27. 6 billion and ranked 3rd in the India’s richest man list.
Wipro is increasingly chasing clients in Europe and Asia. The firm last year landed orders from European clean energy firms Fortum and E.On. It has publicly stated that it is also looking to acquire firms.