Information Technology services major Wipro Ltd said on Thursday it would buy privately-held British consultancy firm Capco for $1.45 billion.
London-based Capco serves banking and financial institutions across the Americas, Europe and Asia-Pacific regions, Wipro said in a regulatory filing adding that Capco services clients in the energy and commodities trading sector as well.
Capco has an experienced executive team withover 5,000 employees across the globe including India, US, UK, France, Germany, Poland, Slovakia, Austria, Poland, Switzerland, Brazil, Singapore, Malaysia and Hong Kong.
The firm will operate as a separate unit (Capco – A Wipro Company), the IT services major said.
With the acquisition, Wipro claims to be “one of the largest providers of integrated, end-to-end consulting, digital, cloud and IT transformation services at scale,” the company stated.
By combining Wipro’s capabilities in strategic design, digital transformation, cloud, cybersecurity, IT and operations services with Capco’s domain and consulting strength, clients will gain access to a partner who can deliver integrated, bespoke solutions to help fuel growth and achieve their transformation objectives, the IT services firm further stated.
Thierry Delaporte, CEO and Managing Director of Wipro Limited said, “ 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.”
Lance Levy, CEO of Capco 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.”
The acquisition is subject to customary closing conditions and regulatory approvals and is expected to close in the quarter ending June 30, 2021 via cash.
On Thursday, Wipro’s scrip on BSE closed 0.80% higher at ₹439 apiece.
Recently, the IT services firm joined the Partnering for Racial Justice in Business initiative launched by the World Economic Forum to promote a culture of diversity, inclusion, equity and justice for people of all racial backgrounds in the workplace.
The initiative is aimed towards driving action and accountability for companies to confront racism at a systemic level, set new global standards for racial justice in business and accomplish necessary policy changes for the inclusion and advancement of professionals with under-represented racial and ethnic identities.