India: Wipro to buy UK consultancy Capco for $1.45b

Photo: Reuters

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.

Infosys Ltd made three digital-related acquisitions last year. In the cloud space, it acquired Simplus, a Salesforce consulting and advisory firm; and GuideVision, a enterprise service management consultancy to strengthen its Cobalt portfolio, an umbrella offering for everything related to cloud. It also acquired digital customer experience company Blue Acorn iCi.

Cognizant Technology Solutions Corp. has made 11 acquisitions in the past 12 months with an aggregate investment of approximately $1.4 billion in its strategic digital focus areas of cloud, data and artificial intelligence (AI), digital engineering, and internet of things (IoT). Most recently, it acquired Linium, a cloud transformation consultancy group specializing in the ServiceNow platform and solutions for smart digital enterprise workflows.

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.