CD&R to Sell Capco in $1.45 Billion Transaction

Rhea-AI Summary

Wipro Limited (NYSE: WIT) has announced its acquisition of Capco, a global management and technology consultancy, for $1.45 billion. The transaction is expected to close in the second quarter of 2021. Capco, headquartered in London, specializes in digital, consulting, and technology services primarily for financial institutions worldwide. CD&R had previously acquired a 60% stake in Capco in July 2017 and enhanced its capabilities during its ownership. This acquisition reflects Wipro's strategy to strengthen its position in technology-related professional services.

Positive

• Acquisition of Capco valued at $1.45 billion enhances Wipro's capability in digital and consulting sectors.
• Capco serves over 100 global organizations, providing a strong customer base for Wipro.

Negative

• None.

NEW YORK, March 5, 2021 /PRNewswire/ -- Clayton, Dubilier & Rice announced today an agreement under which its portfolio company Capco, a global management and technology consultancy, will be acquired by Wipro Limited (NYSE: WIT), a leading global information technology, consulting and business process services company. The transaction, expected to close in the second quarter of 2021, is valued at $1.45 billion.

London-headquartered Capco provides digital, consulting and technology services to financial institutions in the Americas, Europe and the Asia Pacific. The company has worked closely with key business and operational leaders in the banking, capital markets, wealth, asset management and insurance sectors and is widely acknowledged for its domain and digital consulting expertise, risk and regulatory offerings and thought leadership around key industry technology challenges and opportunities. In addition, Capco services clients in the energy and commodities trading sector. Capco has an experienced executive team and over 5,000 business and technology consultants based across more than 30 global locations supporting clients through their expert insights, entrepreneurial approach and focus on delivery excellence.

CD&R funds acquired a 60% stake in Capco in July 2017 in a partnership transaction with the seller, FIS, which retained a 40% ownership interest in the company. CD&R Operating Partner Russ Fradin, who previously served as CEO of SunGard Data Systems (sold to FIS in 2015), has served as Chairman of Capco since CD&R's initial investment. Under CD&R's ownership, Capco invested in organic and inorganic expansion opportunities and added capabilities to further accelerate growth, including in high-growth areas like digital consulting,

"We believe Capco is representative of our strategy in technology-related professional services, which tends to focus on businesses serving complex markets where we believe CD&R can bring operational and strategic experience," said CD&R Partner Stephen Shapiro. "We would like to thank the entire Capco team, led by Lance Levy, for its significant effort in building a consulting organization with a dynamic culture and compelling service offering, and we wish them great success in the future."

Morgan Stanley & Co. LLC acted as lead financial advisor, and Debevoise & Plimpton LLP provided legal counsel to Capco. HSBC Securities (USA) Inc. also acted as financial advisor to Capco.

About Clayton, Dubilier & Rice

Clayton, Dubilier & Rice is a private investment firm with a strategy predicated on building stronger, more profitable businesses. Since inception, CD&R has managed the investment of $30 billion in 96 businesses representing a broad range of industries with an aggregate transaction value of more than $150 billion. The Firm has offices in New York and London. For more information, please visit www.cdr-inc.com. 

About Capco

Capco is a global technology and management consultancy specializing in driving digital transformation in the financial services industry. With a growing client portfolio comprising of over 100 global organizations, Capco operates at the intersection of business and technology by combining innovative thinking with unrivalled industry knowledge to fast-track transformation initiatives for the banking and payments, capital markets, wealth and asset management, insurance, and the energy sector. Capco's ingenuity is brought to life through its Innovation Labs, and award-winning Be Yourself at Work culture and diverse talent. To learn more, visit www.Capco.com or follow us on Twitter, Facebook, YouTube, LinkedIn Instagram, and Xing.

Contact: 
Daniel G. Jacobs
+1 (212) 407 5218
djacobs@cdr-inc.com

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SOURCE Clayton, Dubilier & Rice

FAQ

What is the value of Wipro's acquisition of Capco?

Wipro's acquisition of Capco is valued at $1.45 billion.

When is Wipro's acquisition of Capco expected to close?

The acquisition is expected to close in the second quarter of 2021.

What sectors does Capco serve?

Capco provides services primarily to financial institutions in banking, capital markets, wealth management, and insurance.

Who advised on the Wipro-Capco transaction?

Morgan Stanley & Co. LLC acted as the lead financial advisor, and Debevoise & Plimpton LLP provided legal counsel.