Wipro signs agreement to acquire Encore Theme Technologies for Rs 95 crore

Topics Wipro | IT services

IT services firm Wipro on Wednesday said it has signed a definitive agreement to acquire Encore Theme Technologies - a specialist in providing SaaS and Cloud solutions in financial services - for up to Rs 95 crore.

Chennai-based Encore Theme has focused exclusively on implementing a broad suite of trade finance solutions - developed by Finastra - to financial institutions across the Middle East, Africa, India and Asia Pacific, a statement said.

It has delivered more than 75 large scale Finastra Trade Finance projects for banks across these regions, it added.

"Together with Wipro's reach across the region and proven system integration capabilities, this will help strengthen our position as a dominant player across the globe implementing Finastra solutions," Wipro said in a regulatory filing.

The combined business would make Wipro one of Finastra's largest partners for trade finance globally, it added.

The purchase transaction is "up to Rs 950 million (including contingent consideration) for 100 per cent equity stake".

The filing said 73 per cent equity stake will be acquired by Wipro Limited upfront and the remaining 27 per cent equity stake will be subject to receipt of certain regulatory approvals/confirmations.

"They (Encore) bring a wealth of trade finance product expertise coupled with significant delivery experience of Finastra solutions for both Trade Finance and Cash Management implementations," Angan Guha, Senior Vice President and Global Head, Banking, Financial Services and Insurance at Wipro, said.

The transaction is expected to be completed during the quarter ending December 31, 2020, subject to customary closing conditions, the filing said.

"We strongly believe this synergy will enable global reach, add value to all our customers and bring in new opportunities that will accelerate our growth and that of our team. The decision to join Wipro was driven by their core values of trust and respect to people and unyielding integrity in everything they do," RK Kanthimathinathan, Founder MD and CEO at Encore Theme Technologies, said.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel