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

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