Wipro to acquire UK-based Capco for $1.45 billion

Bengaluru: Wipro NSE -3.68 % Ltd. is paying $1.45 billion to acquire Capco, a British IT consultancy, in its boldest bet yet as the fourth largest Indian software exporter seeks to keep pace with its fast-growing peers in the country’s $147 billion IT outsourcing industry.

Announcing the all-cash deal, which ranks among the largest acquisitions by an Indian IT services company, the Bengaluru-headquartered IT firm said that Capco will continue to operate as an independent entity. The Wipro-Capco deal is expected to close in June following regulatory approvals, Wipro executives told analysts on Thursday.

“I had shared (in November) that you will see a bolder, more ambitious Wipro, one that will be more risk-taking and not be afraid to shake up the applecart,” said Wipro chairman Rishad Premji. “This acquisition fits well into that strategy and will pave the path of building a bold tomorrow for Wipro.”