Wipro acquires Rizing for a sum of $540 million
In the last few years, Wipro has been on an inorganic growth spree. It has been picking up acquisition targets to complete and complement its suite of services. The latest in such acquisitions is the SAP consulting firm, Rizing Intermediate Holdings Inc.
Wipro will pay $540 million in an all cash deal for the business of Rizing. The entire deal is expected to be concluded by the June quarter, subject to receipt of necessary approvals from regulators.
Rizing brings with it in-depth industry expertise and SAP consulting capabilities in enterprise asset management, consumer industries as well as in human experience management.
According to the top management of Wipro, this deal is likely to be instrumental in reinforcing and underlining Wipro’s position as an advisor for complex SAP transformations for its vast client base. This is likely to enhance and enrich the Wipro offerings suite.
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In addition to the strong franchise that Wipro has, Rizing brings to the table lateral consulting capabilities coupled with strong client relationships. This will enable Wipro to enrich and empower their existing offerings.
This will help Wipro to create an extremely differentiated and uniquely positioned SAP services offering in the technology and IT services marketplace. The focus will be on high growth sectors, according to the Wipro MD and CEO, Mr. Thierry Delaporte.
Rizing is a fairly significant player in the SAP consulting space. It currently employs over 1,300 personnel across its 20 offices. Its offices are geographically spread out across North America, Europe, Asia and Australia.
For the Calendar Year 2021, Rizing had reported net revenue of $193.8 million, representing a growth of 40.13% on a YoY basis. For Wipro, the acquisition deal will also offer them access to a host of Fortune 2000 companies.
For Wipro, under the new CEO Mr. Thierry Delaporte, inorganic expansion is an important part of the strategy. Wipro has been looking to catch up on its erstwhile leadership in the Indian IT industry by compensating for the lost growth via strategic acquisitions.
Most of the acquisitions are focussed on companies that offer good value for money and also expand the suite of offerings that Wipro already has on the table.
There have been several recent acquisitions made by Wipro. It had acquired Convergence Acceleration Solutions (CAS), a US-based consulting and program management company for $80 million.
Last year, Wipro had also paid a sum of $230 million for cybersecurity firm Edgile and $21 million for consulting firm Lean Swift. Delaporte has been trying to veer Wipro towards growth through inorganic route to bring in speed and market sensitivity.
With inorganic expansion being identified as one of the top growth strategies for Wipro under Thierry Delaporte, Wipro has already made 23 acquisitions and 20 investments amounting to $4.3 bn.
Delaporte, who took over from Neemuchwala in June 2020, has had a salutary impact on the stock price performance of Wipro as the stock has been moving towards a new multi-year high.
Wipro is scheduled to announce results for the fourth quarter ended March 2022, combined with annual results for the fiscal year FY22, on Friday, 29th April 2022.
Wipro will be the last among the Big-4 to announce quarterly results with TCS, Infosys and HCL Technologies having already announced their quarterly results.
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