Wipro to buyout and acquire Capco in a $1.45B deal

Source: Wikipedia

Wipro is a Bengaluru-based global technology company that deals with consulting and business process services as well. The start-up has recently announced to be involved in the acquisition of British consultancy firm Capco in a deal worth USD 1.45 billion in cash.

According to a report by Hindustan Times, Wipro mentioned in a statement that Capco is a well-established consulting firm with a team of more than 5,000 technology and business consultants. The start-up has its presence in over 30 odd locations and is expected to skyrocket Wipro’s position in the financial technology industry. Wipro is dependent on its financial services business as it contributes to more than 30% of the company’s total revenue generation.

Thierry Delaporte is the Chief Executive Officer and Managing Director at Wipro and it is said that this particular acquisition of Capco is the company’s strike for growth and marks as a bold move taken by the newly appointed Chief Executive Officer, Thierry Delaporte who took over in July 2020.

As mentioned in a report by Hindustan Times, Wipro has raised its position to become India’s third-largest provider of software services that cater to HCL Technologies private Limited as well. We all must know about the digital impact as a consequence of the COVID-19 pandemic.

The pandemic has forced the Indian start-up ecosystem to leverage technology and digital services have spiked phenomenally in the past year during the COVID-19 induced lockdowns.

Capco is not the first acquisition made by Wipro under Delporte’s new leadership. Capco is apparently the third acquisition made by the company under Delporte. Wipro has previously acquired SalesForce company- 4C, Eximus Design- engineering services company and Encore Theme Technologies—a cloud solution specialist in financial services, according to Hindustan Times report.

Furthermore, the Bengaluru-based Wipro mentioned in a statement that Combining Wipro’s capabilities in cloud computing, Information Technology, digital transformation, cybersecurity and operation services with British-based Capco’s clients, consulting strengths and domain practice will deliver solutions that will fuel the businesses’ growth and help in achieving its transformation objectives.

According to the company profile on Crunchbase, Wipro Technologies also acquired METRO SYSTEMS Romania recently in December 2020 for an undisclosed amount. Wipro is globally recognised as an innovative technology company whose approach towards delivering business value and sustaining operations is well praised.

Wipro Technologies was founded back in 1945 by Ashok Narasimhan, Azim Premji and Mohamed Premji.