Wipro announces acquisition of global SAP firm Rizing for $540 mn

The deal, which is expected to close by June 30, will strengthen acquirer's capabilities in large SAP transformative engagements

Continuing on its inorganic play, Bengaluru-headquartered Wipro on Tuesday announced the acquisition of Rizing Intermediate Holdings, a global SAP consulting firm, for a consideration of $540 million (around Rs 4,060 crore).

The company stated that the acquisition will significantly expand its breadth of capabilities in helping businesses transform into intelligent enterprises.

The acquisition is subject to regulatory approvals and is expected to close before the end of the quarter ending June 30, 2022.

Rizing is the latest in a series of acquisitions by Wipro, underscoring the company’s ambitious growth agenda. The acquisition will allow Wipro to build SAP consulting capabilities bringing strategic consulting capabilities in large SAP transformation engagements. Last year Wipro had acquired Capco in a $1.5 billion deal.

This also strengthens Wipro’s presence in SAP focused verticals like retail & consumer goods, energy and utilites.

Headquartered in Stamford CT, Rizinf has over 20 offices across North America, Europe, Asia and Australia. The company has over 1,300 employees with presence in 16 countries. Rizing was previously owned by private equity firm One Equity Partners.

“Thierry Delaporte, Chief Executive Officer & Managing Director, Wipro said:, “Rizing’s complementary consulting capabilities and strong client relationships will significantly boost our existing offering, creating one of the most differentiated SAP services in the marketplace. Together, we will be able to expand our presence in high-growth industry sectors.”

Rizing’s high-touch approach, along with its industry expertise and SAP consulting capabilities in enterprise asset management, consumer industries, and human experience management, will be instrumental in advancing Wipro’s position as a sought-after advisor for clients’ most complex SAP transformations.

For CY21 the company reported revenue of $193.8 million. In terms of geography contribution; North America is the biggest contributor (58 per cent), followed by Asia (23 pe cent) and Europe (19 per cent).

Rajan Kohli, President of Wipro’s iDEAS (Integrated Digital, Engineering and Application Services) business, added, “Our clients’ digital transformation needs are rapidly evolving, and they are turning to us to help them become Intelligent enterprises. Rizing’s domain expertise, combined with our cloud and digital solutions, will allow us to help clients unlock new value and build agile businesses for a new era of digitalization.”

As one of the leading strategic partners in the world for SAP, Rizing will become a critical extension of Wipro’s SAP Cloud practice and Wipro FullStride Cloud Services. The combined offering will help clients surface unique business opportunities and new competitive advantages through SAP cloud implementations. It will also help Wipro expand its leadership in oil & gas, utilities, manufacturing, and consumer industries.

“This is the next phase of growth for Rizing. With Wipro’s backing, we will be able to enhance the value we deliver to our current clients and bring our differentiated offering to a broader universe of businesses,” said Mike Maiolo, Chief Executive Officer, Rizing. “Combining the two firms will allow us to scale our services and expand our footprint in the market. We are thrilled to join a company that shares our values and vision, enabling us to grow in new strategic areas.”

Upon completion of the acquisition, Rizing will operate as Rizing, a Wipro company, under the leadership of Maiolo.