Overview:
On July 23, 2020, Wipro announced that it had signed a definitive agreement to acquire 4C, one of the largest Salesforce partners in UK, Europe and the Middle East, for $79m.
The transaction represents an EV / LTM sales multiple of 2.1x and is expected to be closed in the quarter ending September 30, 2020.
About Wipro:
Wipro is a leading global information technology, consulting and business process services company.
Recognized globally for its comprehensive portfolio of services, including cognitive computing, hyper-automation, robotics, cloud, analytics and emerging technologies, it has over 180,000 employees serving clients across six continents.
About 4C:
Founded in 1997, 4C is a Salesforce consulting company. It has deep capabilities across multiple Salesforce clouds including Sales, Marketing, Field Services and specializes in transforming Quote-to-Cash processes with Salesforce’s Configure, Price, Quote (CPQ) and billing solutions.
It has successfully delivered over 1500 projects, for over 500 customers including Aston Martin, Deutsche Bank, BMW, Toyota, AXA, Aon, Maersk, 24Seven, Emaar, Unilever, Renault, British Red Cross, Mazda and Shell.
It has over 350 employees and is one of EMEA’s most certified Salesforce partners with over 1000 Salesforce certifications.
The company clocked revenues of $20m, $28m and $36m in fiscal years 2018, 2019 and 2020, respectively. Its fiscal year ends on January 31.
It is headquartered in Mechelen, Belgium with additional offices in London, Paris, Brussels, Copenhagen and Dubai.
Transaction Rationale:
This acquisition significantly strengthens Wipro’s position as a leading provider of Salesforce solutions in the UK, France, Benelux, the Nordics and the UAE.
It complements Wipro’s acquisition of Appario in 2016, which strengthened its Salesforce consulting capabilities in the Americas, Japan and Australia.
4C will be consolidated as part of Wipro’s Salesforce practice, which provides market leading solutions globally around multiple Salesforce clouds and its ecosystem of products.
“We are excited to have the team at 4C join us. They bring in a rich blend of deep Salesforce expertise across multiple clouds coupled with a team of multi-faceted, multilingual experts with strong regional knowledge. This combination along with Wipro’s reach across the region and industry, will help us become a dominant player in Europe and a leader in Salesforce’s Quote to Cash domain,” said Harish Dwarkanhalli, President, Cloud Enterprise Platforms (CEP), Wipro Limited.
This is the company’s second acquisition since Thierry Delaporte took over as CEO on July 6. On July 14, Wipro had announced that it would acquire Brazil-based IVIA Servicos for $22.4m.
The Chesapeake Group was not advisor to either party in this transaction
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