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INFY - Infosys News Story

$18.38 -0.2  -1.2%

Last Trade - 07/05/21

Large Cap
Market Cap £56.10bn
Enterprise Value £54.07bn
Revenue £9.82bn
Position in Universe 164th / 6858

UPDATE 1-India's Wipro to buy UK-based consultancy Capco for $1.45 bln

Thu 4th March, 2021 12:21pm
(Adds details, background)
    BENGALURU, March 4 (Reuters) - Wipro Ltd  WIPR.NS  said on
Thursday it would buy British consultancy Capco for $1.45
billion in cash, as the Indian software giant looks to boost its
offerings for the financial services industry that generates the
bulk of its revenue.
    London-based Capco makes 96% of its revenue from Europe and
North America, from where Indian IT services companies have
traditionally won the most lucrative contracts.
    Wipro and its rivals including Infosys Ltd  INFY.NS  and
Tata Consultancy Services Ltd  TCS.NS  have become major global
players, offering services spanning from back-office work for
banks to social media content moderation as well as traditional
technical support.
    Capco will give Wipro access to 30 new large banking and
financial clients and make the Indian firm one of the largest
end-to-end consulting and technology service providers to that
industry globally, Wipro said.*:nBSE9MkhxQ
    Banking and financial clients account for nearly a third of
Bengaluru-headquartered Wipro's revenue, the largest from any
    The deal also comes as businesses globally spend more on
digital and other back-end services to support remote work
during the pandemic.
    Wipro said the Capco acquisition would reduce its IT
services earnings before interest and taxes (EBIT) margins by
about 2% in the first year. Capco will begin adding to Wipro's
earnings per share from the third year, it added.
    Wipro said it expects the deal to close in the quarter
ending June.

 (Reporting by Sachin Ravikumar in Bengaluru; Editing by
Ramakrishnan M.)
 ((; +91 80 6182 2754; Twitter: @sachinr27;))
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