IT services major Wipro's shares on Friday declined over 4 per cent after the firm said it has signed an agreement to acquire Capco, a global management and technology consultancy, in a $1.45 billion (over Rs 10,500 crore) deal. This will be the biggest ever acquisition by Wipro.
On BSE, the shares ended at Rs 420.4, lower 4.2 per cent over the previous close. During the trading session, the scrip had hit intraday low of Rs 417. Similarly, on NSE, the scrip ended 3.83 per cent lower at Rs 421.30. Intra-day, it touched a low of Rs 417.
Clients will benefit from a combination of Wipro's capabilities in strategic design, domain and consulting, digital transformation, cloud, cybersecurity, data and IT services with Capco''s deep domain and consulting capabilities across banking, payments, capital markets, insurance, risk and regulatory offerings, Wipro said in a regulatory filing on Thursday. The transaction is expected to be completed during the quarter ending June 30, subject to requisite regulatory approvals and customary closing conditions.
Founded in 1998, Capco works with more than 100 clients and has many long-standing relationships with the world's leading financial institutions. The company's consolidated revenues for the year ended December 2020 was $720 million.