Wipro to acquire Encore Theme Technologies for Rs 95 crore

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.