India-based IT giant Wipro Limited (Wipro) has recently agreed to acquire London-headquartered global management and technology consultancy Capco for US$1.45bn. Subsequently, there was a 150% spike in influencer conversations on Wipro during the first week of March compared to the previous week, reveals GlobalData, a leading data and analytics company.

This is Wipro’s largest ever acquisition through which it will be getting immediate access to 30 large banking and financial clients. On the other side, some influencers are of the opinion that the deal may face some hurdles in terms of revenue and integration in the short-term but will be positive in the long-term.

Smitarani Tripathy, Influencer Analyst at GlobalData, comments: “An analysis of GlobalData’s Wipro Limited, Company Influencer Platform reveals that Acquisition, Financial Services, Banking, #Consultancy and #Fintech emerged as most mentioned trends and hashtags during the period.”

Below are a few most popular influencer tweets captured by GlobalData Influencer Platform:

1. Gautam Ghosh, Independent Digital HR and Employer Branding Consultant, shared his opinion:

“What the Wipro-Capco deal means for Indian IT They will now own the entire lifecycle—from consulting to building the technology architecture.”

https://twitter.com/GautamGhosh/status/1368394728530530305

2. Omkar Rai, Director General Software Technology Parks of India (STPI), said:

“@Wipro acquiring @Capco, a global management & technology consultancy firm in #BFSI, for $1.45 Bn underscores how Indian IT behemoths are scaling up their business globally through consolidation & acquisition to deliver world-class services to clients.”

https://twitter.com/Omkar_Raii/status/1367706995038380041

3. Dominique Raviart, Practice Director at NelsonHall, tweeted:

“A massive acquisition for @Wipro with @Capco, a UK capital market consultancy Capco had 2020 revenues of $720m”

https://twitter.com/DominiqueR_NH/status/1367484311646134279

4. Srishti Sharma, Research Analyst at Zee Business, tweeted on how the Wipro-Capco integration can impact the company’s EPS:

“Brokerage on Wipro Post Capco Acquisition Majority feel that Integration could be tricky Transaction could impact EPS in near term.”

https://twitter.com/SrishtiSharma_/status/1367673384499253248

5. Madhavan Narayan, Independent Senior Editor, tweeted:

“Wipro to acquire UK consultancy firm Capco for $ 1.45 bn. Biggest buyout by an Indian IT company, bearing HCL-Axon. Surprise! #AzimPremji shows he can think big with an open wallet.”

https://twitter.com/madversity/status/1367507953272549376

6. Harshada Sawant, Senior Editor at CNBC TV18, shared his opinion:

“EYES on #WIPRO

Acquires 100% stake in Capco

Valued at $1.45 bn

deal Expected to add 8.5% to revenue on an annualised basis

Deal to be +ve in longterm but in Short term will dilute Ebit Margin”

https://twitter.com/AEHarshada/status/1367663854491070467

7. Nigel D’Souza, Anchor and Associate Editor-Research at CNBCTV 18 News, shared his analysis:

“Wipro -3% post Capco Acquisition Thumbs down

1) History not on their side Down pointing backhand index

In 2012: Infosys acquired Loadstone

Initial synergies were quite strong but faded out

2) Capco’s revenues flat for 3 yrs

Right pointing backhand index But Wipro paid 70-75% higher vs 2017 PE deal”

https://twitter.com/Nigel__DSouza/status/1367732264843444230