Big Bet: Wipro buys British consultancy firm Capco in $1.45-billion deal

March 05, 2021 4:15 AM

The Azim Premji promoted firm said the acquisition would it catapult to one of the largest end-to-end global consulting, technology and transformation service providers to the banking and financial services industry.

wipro share price, Wipro Q4, HCLWipro announced its commitment to achieving Net-Zero Greenhouse Gas (GHG) emissions by 2040 in line with the objective of the Paris Agreement

By Srinath Srinivasan

In what will be its biggest acquisition, software services giant Wipro said on Thursday it would buy privately-held British consultancy firm Capco for $1.45 billion.

The Azim Premji promoted firm said the acquisition would it catapult to one of the largest end-to-end global consulting, technology and transformation service providers to the banking and financial services industry.

The Capco buy should see Wipro gaining access to access to 30 new large BFSI clients. CEO and MD Thierry Delaporte told analysts financial institutions were investing in technology more than ever.

“They are looking to connect with clients, improve employee experience and to create new revenue channels. So you have to play at different levels.

You need to think about strategies, transformations with CXOs and execute them to make them win. So this acquisition is strategic and comes at the right time,” Delaporte said.

The London-based Capco serves financial institutions across the Americas, Europe and Asia-Pacific regions. Lance Levy, CEO, Capco, observed the market is stronger partly due to Covid-19.

“Financial institutions have been putting technology to use faster than ever and we expect the demand to continue for some time. More clients are asking for a single services provider,” Levy said.

At the end of December, Wipro had Rs 45,234 crore worth of cash on its books.

Thierry observed that Capo’s expertise would enable developing capabilities and technologies.” Scale matters and the ability to address multiple stakeholders is critical,” he added.

DD Mishra, senior director analyst, Gartner, observed Wipro’s acquisition of Capco complements its consulting organisations. ”As the total number of deals coming from traditional RFP routes is declining, IT service providers need to engage early with customers across various verticals to support their journey. Many a time, customers are unaware of what they do not know, consulting capabilities provide them a deep-dive into this unknown territory and enable efficient decision-making,” Mishra pointed out.

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