Wipro Ltd said Wednesday it has signed a definitive agreement to acquire Encore Theme Technologies Pvt. Ltd, which provides software-as-a-service and cloud solutions to banking and financial services companies.
Bengaluru-based Wipro said in a statement it will pay up to Rs 95 crore ($12.8 million) to buy Chennai-headquartered Encore.
Wipro, India’s third-largest software services exporter, will first purchase a 73% stake in Encore and then buy the remaining subject to regulatory approvals. It expects to complete the deal during the current quarter.
Encore implements a broad suite of trade finance solutions, developed by Finastra, one of the world’s largest fintech companies, for financial institutions across the Middle East, Africa, India and the Asia Pacific. It has delivered more than 75 large-scale Finastra trade finance projects for banks across these regions, Wipro said.
The acquisition will help strengthen Wipro’s position as a dominant player across the globe implementing Finastra’s solutions in the trade finance and cash management segments. The combined business of the two companies would make Wipro one of Finastra’s largest partners for trade finance globally, it said.
Founded in 2006, Encore has 140 employees. It posted revenue of Rs 54.5 crore for the year through March 2020, up from Rs 49.5 crore the year before.
This is Wipro’s fourth acquisition within four months and the second this month. Earlier in October, it agreed to acquire California-based Eximius Design for $80 million in an all-cash deal.
The company struck two acquisitions in July. It first decided to purchase Brazilian IT services company IVIA Servicos de Informatica Ltda for $22.4 million and then snapped up Belgium-based 4C for $78.7 million to boost its Salesforce vertical.