Wipro, a Bengaluru-based IT consulting firm, has announced that it will acquire US-based SAP consulting company Rizing Intermediate Holdings Inc. for $540 million, marking Wipro’s second acquisition this month.
The transaction is an all-cash deal that is anticipated to be completed before June 30 condition to customary closing conditions and requisite regulatory approvals.
A credible source stated in a statement that Rizing’s industry expertise along with SAP consulting capabilities in human experience management, asset management, and consumer industries will be contributory to extending Wipro’s position as an advisor for most complex SAP transformations.
Furthermore, Thierry Delaporte, MD and CEO of Wipro, said Rizing’s commendable consulting capabilities and deep-rooted client relationships will boost Wipro’s existing offering, thereby diversifying unique SAP services in the marketplace. Together, both entities will be able to accelerate the expansion in high-growth industry sectors.
Rizing has more than 1,300 employees and almost 20 offices across North America, Asia, Australia, and Europe. It reported net revenue of $193.8 million by the end of the calendar year 2021 and $138.3 million in 2020.
In the investor presentation conducted by Wipro, the company identified Wipro SAP focus industries of energy & utilities, retail & consumer goods as a reasonable strategy for the acquisition. The transaction will not only bring deep consulting capabilities but will also give access to Fortune 2000 list.
Earlier this month, Wipro acquired a US-based consulting and program management company Convergence Acceleration Solutions (CAS) for $80 million- contingent consideration of $30 million and cash consideration of $ 50 million.
Wipro also acquired consulting firm LeanSwift for $21 million and Edgile for $230 million last year. In addition to this, the company had made 23 acquisitions and nearly 20 investments as of December 2021.
Apart from this, Wipro is scheduled to deliver results for the fourth quarter and for fiscal year 2022 this week.