Wipro Bolsters SAP expertise Through Acquisition

Global information technology, consulting, and business process services provider Wipro Ltd. (WIT) has agreed to acquire global SAP consulting firm Rizing Intermediate Holdings. The strategic move combines Wipro’s global presence with Rizing’s SAP consulting and deep industry expertise.

Management Weighs In

The President of Wipro’s iDEAS (Integrated Digital, Engineering, and Application Services) vertical, Ranjan Kohli, commented, “Our clients’ digital transformation needs are rapidly evolving, and they are turning to us to help them become intelligent enterprises. 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 digitalization.”

Mike Maiolo, CEO of Rizing, stated, “This is the next phase of growth for Rizing. With Wipro’s backing, we will be able to enhance the value we deliver tour current clients and bring our differentiated offering to a broader universe of businesses.”

Wipro has announced a string of acquisitions recently as part of its growth initiatives. The addition of Rizing’s SAP expertise in enterprise asset management, consumer industries, and human experience management will help Wipro advance its standing as an advisor to clients.

Additionally, Wipro is expected to post its fourth-quarter numbers on April 29, after market hours in India. The Street sees the company posting earnings per share of $0.08 on revenue of $2.8 billion for the period.

Analyst Take

Jefferies analyst Akshat Agarwal has upped the stock’s rating to a Hold from a Sell but decreased the price target on Wipro to $7.70 from $8.55, implying a potential upside of 14.7%. That’s after a nearly 31.2% correction in share prices so far this year.

Closing Note

Rizing is expected to become a critical extension of Wipro’s SAP Cloud practice as well as its FullStride Cloud Services. The move also helps Wipro expand its oil & gas, utilities, manufacturing, and consumer industries expertise. The transaction is expected to close before the end of the quarter ending June 30.

TipRanks database indicates hedge funds have increased holdings in Wipro by 495,000 shares in the last quarter. Moreover, investor sentiment is very positive on the stock with the number of portfolios holding Wipro up by 10.3% in the last 30 days alone.

Discover new investment ideas with data you can trust.

Read full Disclaimer & Disclosure

Related News:
Kohl’s Soars on Another Buyout Offer
Crown Holdings Slips Despite Upbeat Q1 Results
Kimberly-Clark’s Q1 Results Surpass Expectations