Wipro’s Acquisition Of  Capco - A Bold Move: IDBI Capital 
Wipro Bengaluru campus. (Source: BloombergQuint)

Wipro’s Acquisition Of Capco - A Bold Move: IDBI Capital 


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IDBI Capital Report

Wipro Ltd. has announced its biggest acquisition till date.

It has announced acquisition of Capco – a global management and technology consulting company focused on the banking financial services and insurance vertical.

The company would pay $1.45 billion in cash at an implied CY20 revenue multiple of ~2 times. The acquisition is expected to be completed in Q1 FY22.

While the acquisition increases our FY22/23 IT services revenue forecast by 6.3%/8.2%, it would weigh on Ebit margin and thus on consolidated earnings per share.

We believe that Capco’s acquisition is a bold move by Wipro, it would have meaningful impact on profitability amid company’s target to accelerate organic growth.

Click on the attachment to read the full report:

IDBI Capital WIpro Company Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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