Spotlight

An archive of past spotlight issues.

 

The martinwolf team tracks noteworthy mergers and acquisitions, and offers
commentary on issues that impact our industry.

decor decor
"It’s a significant bet by Wipro that they can pivot out of the lower value outsourcing application development space"

Marty Wolf Interviewed Regarding Wipro’s Acquisition of Capco

martinwolf Managing Partner Marty Wolf was interviewed in CRN regarding Wipro Limited’s (NYSE: WIT) $1.45 billion acquisition of Capco. Wolf, who has been involved in more than 180 IT M&A transactions during the last 20 years, categorized Wipro’s move as strategic but risky.

 

“It’s a significant bet by Wipro that they can pivot out of the lower value outsourcing application development space which is largely becoming commoditized and into higher-margin financial technology services consulting. Whether it is Snowflake or others a lot of the work of those traditional Indian IT outsourcing companies is being minimized and marginalized. This means Wipro will compete more with companies that focus on higher gross margin services like Accenture, Deloitte and EY,” Wolf said.

 

In addition to this acquisition and others, Wolf expects the consolidation in the IT services sector to continue, “The way technology is evolving is accelerating the market consolidation,” he said. “You have innovators growing very rapidly, carving out their space.”

 

Indian-based Wipro and London-based Capco will face significant culture and business model challenges, according to Wolf, “In this case the higher gross margin business is the company that is being acquired and that is always an issue. Wipro is a smart company and I am sure they have thought that through.”

 

Read Steven Burke’s full piece on CRN here. If you’d like to talk to someone at martinwolf about what this means for your business, contact Colin Riley (criley@martinwolf.com).

previous post Back to Articles next post

24 Apr 2024

Celestica (NYSE: CLS) to Acquire NCS Global from Heritage Holding

Financial Information Enterprise Value: $36M (and a possible earnout payment should certain post-closing financial conditions be met) Transaction Details Celestica has entered into a definitive agreement to acquire NCS Global, a US-based IT infrastructure and asset management business. The transaction is expected to close in May 2023 or earlier, subject to satisfaction of customary closing...

02 Apr 2024

CD&R to Acquire Presidio from BC Partners

Financial Information Not Disclosed Transaction Details Clayton Dubilier & Rice (CD&R) and BC Partners announced on April 2, 2024, that they have entered into a definitive agreement under which CD&R will acquire a majority ownership of Presidio. Funds affiliated with BC Partners will retain minority ownership interest. The transaction is expected to close in the...

06 Feb 2024

NWN Carousel acquired by American Securities

Financial Information Revenue: Approx. $900 million Enterprise Value: N/A Transaction Details NWN Carousel announced a transition of ownership from New State Capital Partners to affiliates of American Securities. This transition represents the success of significant investment, organic growth, M&A execution, operational excellence and innovation under ownership of New State Capital Partners. NWN Carousel developed a...