IT and consulting company Wipro Ltd has announced the acquisition of Rizing Intermediate Holdings, a global SAP consulting firm, to scale up their SAP (systems, applications and products) consulting capabilities. The Bengaluru-headquartered Wipro has sealed the deal for $540 million, or roughly Rs 4,060 crore. The acquisition, the company expects, will help their clients transform their businesses into “intelligent enterprises”.
Wipro, after the mandatory regulatory approvals, will own 100 percent stakes in Rizing. The complete transfer of ownership is expected to culminate before June 30. The global SAP consulting service, Rizing, is headquartered in Stamford, Connecticut, and has operations active in 16 countries across Asia, Australia, Europe, and North America. Before Wipro grabbed the ownership, the firm was owned by a private equity firm One Equity Partners.
After the acquisition, Rizing will operate as a unit of Wipro, under the leadership of Mike Maiolo, the CEO of the company. “This is the next phase of growth of Rizing. With Wipro’s backing, we will be able to enhance the value we deliver to our current client and bring our differentiated offering to a broader universe of businesses,” said Mike.
Addressing the takeover, Rajan Kohli, president of Wipro’s iDEAS (Integrated Digital, Engineering and Application Services), said, “Rizing’s domain expertise, combined with our cloud and digital solutions, will allow us to help clients unlock new value and build agile businesses for a new era of digitalisation.”
Wipro’s acquisition of Rizing is fuelled by the company’s vision of growth entitled ‘New Wipro’, led by the company’s honcho, Thierry Delaporte, who took over the executive position in July 2020. The list of subsidiaries of the company is getting longer as the company rides on an acquisition spree.
Starting from the time Thierry took over, Wipro has as many as 10 companies. These include Capco for $1.45 billion, Ampion for $117 million, Encore Theme Technologies for $12.5 million, and Edgile for $230 million, among others. And now, for $540 million, Rizing has been added to the list.
In 2021, Wipro reported total revenue of over $10 billion, while the net income of the company for last year stands at $1.4 billion.