Wipro stocks fall nearly 4% after signing deal to buy Capco for $1.45 bn

IT services major Wipro's shares on Friday went down nearly 4% in early trade after the firm said it has signed an agreement to acquire Capco

IT services major Wipro's shares on Friday went down nearly 4 per cent in early trade after the firm said it has signed an agreement to acquire Capco, a global management and technology consultancy, in a USD 1.45 billion (over Rs 10,500 crore) deal.

This will be the biggest ever acquisition by Wipro.

On BSE, the shares were trading at Rs 421.30, lower 3.99 per cent over the previous close.

Similarly, on NSE, the scrip was trading 3.98 per cent lower at Rs 421.30.

Clients will benefit from a combination of Wipro's capabilities in strategic design, domain and consulting, digital transformation, cloud, cybersecurity, data and IT services with Capco's deep domain and consulting capabilities across banking, payments, capital markets, insurance, risk and regulatory offerings, Wipro said in a regulatory filing on Thursday.

The transaction is expected to be completed during the quarter ending June 30, subject to requisite regulatory approvals and customary closing conditions.

Founded in 1998, Capco works with more than 100 clients and has many long-standing relationships with the world's leading financial institutions. The company's consolidated revenues for the year ended December 2020 was USD 720 million.