Overview:
On 11 April 2022, Wipro announced that it had acquired Convergence Acceleration Solutions (CAS Group), a Roswell, GA-based business and technology advisory services company for $80m, representing an EV / Sales multiple of 2.8x based on CY 2021 financials.
The combined entity will provide communication service providers (CSPs) with strategy development and planning, execution and implementation services.
About Wipro:
Wipro is a leading global information technology, consulting and business process services company. It provides a comprehensive set of services leveraging cognitive computing, hyper-automation, robotics, cloud, analytics and emerging technologies.
About Convergence Acceleration Solutions:
Founded in 2007, Convergence Acceleration Solutions (CAS Group) is a business and technology advisory services company providing operational support system (OSS) and business support system (BSS) transformation, application modernization, broadband infrastructure, and telco network enablement services.
It has Fortune 100 communications service providers (CSPs) as its clients.
The company recorded a revenue of $28.1m in CY 2021.
It is headquartered in Roswell, GA.
Rationale of the transaction:
CAS Group’s deep-rooted client relationships and strong domain expertise coupled with Wipro’s execution capabilities will deliver an end-to-end professional services solution and immediate impact to clients.
Together, the companies will provide clients with services ranging from strategy development and planning to execution and implementation.
CAS Group’s 145 employees will join Wipro.
Commenting on the transaction, Malay Joshi, Senior Vice President and Sector Head for Communications, Media & Information Services at Wipro said, “Communications service providers in North America are at the cusp of significant transformation driven by new connectivity technologies, solutions, and differentiated business models. CAS Group aligns very well with Wipro’s strategic priorities of strengthening our client partnerships by providing differentiated business solutions with talent at scale in the markets we serve. Combined with Wipro’s deep engineering prowess and extensive capabilities in Cloud, IoT, 5G commercialization, as well as our comprehensive digital business offerings—everything from customer experience and digital design to security and compliance—the addition of CAS Group to Wipro family will bring clients end-to-end global technology, consulting, and business transformation capabilities.”
The Chesapeake Group was not an advisor in this transaction.