Wipro said today that it will acquire SAP consulting firm Rizing Intermediate Holdings Inc for $540 million in an all cash deal, marking the Bengaluru-based company’s second acquisition this month. The transaction is expected to be completed before quarter ending June 30 subject to requisite regulatory approvals and customary closing conditions, according to the exchange filing.
Rizing’s 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 an advisor for clients’ most complex SAP transformations, it said in a statement.
“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,” said Thierry Delaporte, managing director and chief executive officer of Wipro.
The Connecticut, US-based company has over 1,300 employees and over 20 offices across North America, Europe, Asia and Australia. It reported a consolidated net revenue of $193.8 million for the year ended December 2021 and $138.3 million in 2020.
Wipro, in its investor presentation, identified strengthening Wipro SAP focus industries of retail & consumer goods, energy & utilities as strategic rationale for the acquisition. The transaction will also bring deep consulting capabilities and access to Fortune 2000 companies, it added.
Earlier this month, Wipro announced the acquisition of Convergence Acceleration Solutions (CAS), a US-based consulting and program management company for $ 80 million. The software exporter acquired cybersecurity firm Edgile for $230 million and consulting firm LeanSwift for $21 million late last year. Inorganic expansion is one of the top growth strategies for Delaporte since he took the helm in July 2020. As of December 2021, the company had made 23 acquisitions and 20 investments amounting to $4.3 billion, according to data from Tracxn.
The company is scheduled to announce results for the fourth quarter and for fiscal 2022 on Friday.
Source: Economic Times