Wipro to acquire UK consultancy Capco for $1.45 bn

BENGALURU: Wipro Ltd on Thursday said it has agreed to buy British consulting firm Capco for $1.45 billion in cash, in the company’s biggest bet since it was founded.

Capco has a team of more than 5,000 business and technology consultants across 30 locations, and is expected to bolster Wipro’s position in the financial services industry, which contributes about 30% to the company’s revenue, the Bengaluru-based company said in a statement.

“Together, we can deliver high-end consulting and technology transformations and operations offerings to our clients,” said Thierry Delaporte, chief executive officer and managing director of Wipro.

The latest acquisition is Delaporte’s boldest move to spur growth after the company ceded its position as India’s third-largest software services provider to HCL Technologies Ltd. Since he took over in July, Delaporte has made a series of acquisitions to restore growth amid soaring demand for digital services during the pandemic.

The latest acquisition is expected to close in the quarter ending June. London-based Capco provides digital, consulting and technology services to financial institutions. Capco’s clients include top companies in the financial services and energy and commodities trading sectors.

Before Capco, Wipro made three acquisitions under Delaporte. Through 2020, it acquired leading Salesforce multi-cloud partner 4C; engineering services company Eximius Design; and Encore Theme Technologies, a specialist in providing cloud solutions in financial services.

Top IT services companies are increasingly acquiring smaller companies as a strategy to rapidly grow their digital business, which has seen high demand during the pandemic. These specialized firms bring in ready talent and technology capabilities that complement their existing domain expertise.

“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,” Wipro said in a statement.