Wipro acquires Convergence Acceleration Solutions

News: Wipro has informed the stock exchanges that it has acquired Convergence Acceleration Solutions (CAS) – a US based consulting firm that specialises in driving large scale business and technology transformation for Fortune 100 communication service providers. The company is paying US$80 mn for the transaction (2.8x price to sales) which includes US$50 mn upfront and US$30 mn over the next three years

Views: The acquisition is expected to scale up communication vertical of Wipro, which currently only forms 5% of the vertical mix. The acquisition would also help Wipro get new relationships in Fortune 100 communication providers where CAS has a strong presence as the joint entity is expected to clients services ranging from strategy development, planning to execution and implementation

Impact: Neutral