Overview:
On 26 April 2022, Wipro announced that it had agreed to acquire Rizing, a global SAP consulting company for $540m, representing an EV / Sales multiple of 2.8x based on CY 2021 financials.
Rizing brings strategic SAP consulting capabilities and deep expertise in the oil & gas, utilities, manufacturing, and consumer industries to Wipro.
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 Rizing:
Founded in 2003, Rizing is a pure-play premier SAP solution and services provider. It has over 1300 employees in 16 countries across North America, Europe, Asia, and Australia.
The company recorded a revenue of $194m in CY 21.
It derives 58%, 23% and 19% of its revenues from North America, Asia and Europe, respectively. By vertical, it derives 60%, 17%, and 16% of its revenues from Retail, Fashion & Consumer Products, Energy & Utilities, Manufacturing & Tech, respectively and 7% from Others.
It is owned by private equity firm One Equity Partners.
The company is headquartered in Stamford, CT.
Rationale of the transaction:
Rizing’s industry expertise and SAP consulting capabilities in enterprise asset management, consumer industries, and human experience management, will be instrumental in advancing Wipro’s position as a sought-after advisor for clients’ most complex SAP transformations.
It also bolsters Wipro’s leadership in oil & gas, utilities, manufacturing, and consumer industries.
Rizing will become a critical extension of Wipro’s SAP Cloud practice and Wipro FullStride Cloud Services.
Upon completion of the transaction, Rizing will operate as Rizing, a Wipro company, under the leadership of Mike Maiolo, Chief Executive Officer, Rizing.
Commenting on the transaction, Thierry Delaporte, Chief Executive Officer & Managing Director, Wipro said, “We are thrilled to welcome the Rizing team to the Wipro family. Rizing’s complementary consulting capabilities and strong client relationships will significantly boost our existing offering, creating one of the most differentiated SAP services in the marketplace. Together, we will be able to expand our presence in high-growth industry sectors.”
The Chesapeake Group was not an advisor in this transaction.