New Delhi: IT company Wipro has struck a deal to buy British consultancy Capco for 14 145 million. It is being called Wipro’s largest acquisition. The deal will be in full cash. As a result, Wipro’s stock has been rising for four consecutive days. Capco BFSI Provides digital, consulting and technology services. Following the deal, Wipro will have direct access to 30 BFSI clients. The deal will be funded by cash and debt, while Capco will receive આવક 700 million in revenue. Capco has 5,000 employees at 30 locations. The deal will be in full cash. The deal is expected to close in the quarter ending June 30, 2021.
Capco’s capability strengthens Wipro
London-based Capco serves financial institutions in the US, Europe and the Asia-Pacific region. Lap Lavi, CEO of Capco, said the market will be stronger after Kovid-19. Financial institutions are using new technology at a faster pace than expected. This demand will continue for the next few years. More and more companies are seeking a single service provider. At the end of December, Wipro had Rs 45,234 crore in cash in its book. Wipro CEO-MD Thierry Delport said financial institutions are using more technology than ever before.
Great potential in the financial technical advisory market
Wipro’s capacity and scale will be beneficial to all technology-related stakeholders in financial institutions, Delport said. According to DD Mishra, Gartner’s senior managing analyst, the deal will enhance Wipro’s advisory and help it emerge as a key player in this direction.