Wipro to Acquire Capco for $1.45 Billion - Tech News

Wipro Acquires Capco for $1.45 Billion

On Thursday, Wipro announced a definitive agreement to acquire Capco, a British technology consultancy established 22 years ago, for a sum of $1.45 billion.

This acquisition is strategically aimed at expanding Wipro’s client base within the European and Asian markets.

Complementary Business Models

Wipro, with the United States currently representing its largest market, highlighted the complementary business models shared by both organizations.

The completion of this deal is anticipated by the end of June.

Capco’s Client Base

Capco, headquartered in London, boasts a clientele comprised of prominent entities within the global financial services sector.

These include key decision-makers – Boards and C-Suites – across banking, capital markets, wealth management, asset management, and insurance industries, as detailed in a filing to the Indian stock exchange (PDF).

Capco’s Expertise and History

The privately-held Capco, employing approximately 5,000 consultants, previously secured $80 million in funding from investors over two decades ago.

It is recognized for its extensive domain knowledge, consulting proficiency, and expertise in risk, regulatory compliance, and addressing technological challenges within various industries.

Furthermore, Capco provides services to companies operating in the energy and commodities trading sectors, as stated in a joint press release.

Leadership Statements

Thierry Delaporte, Wipro’s CEO and Managing Director, expressed confidence in the synergy between the two companies.

He stated that the combined entity will be capable of delivering comprehensive consulting, technology transformation, and operational services to clients.

Delaporte, who assumed his current role last year, believes the new Capco colleagues will embrace Wipro as their new home.

Wipro’s Strategic Shift

Delaporte succeeded Abidali Neemuchwala, who served as the company’s leader for four years.

Neemuchwala’s tenure saw the company fall short of its goal to achieve $15 billion in revenue by 2020; revenue stood at $8.1 billion at the end of March of the previous year.

Under the current leadership, Wipro is actively pursuing clients in both Europe and Asia.

Recent successes include securing contracts with European clean energy companies Fortum and E.On, and the firm has publicly indicated its intention to pursue further acquisitions.

Capco’s Vision for the Future

Lance Levy, CEO of Capco, conveyed excitement about the potential of the combined organization.

He emphasized the ability to deliver tailored, end-to-end solutions powered by innovative technology, establishing a leading partnership within the financial services industry.

Levy anticipates leveraging the complementary capabilities and shared cultures of both companies to drive industry innovation and create opportunities for clients and employees alike.

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