Wipro gains on plans to acquire Opus Capital Market Consultants
According to Morgan Stanley note, the acquisition is unlikely to be a significant stock price driver for the company.
By ET Online | Updated:
MUMBAI: Shares of Wipro moved higher in lackluster trade after it announced plans to buy American mortgage services company Opus Capital Market Consultants for $75 million (Rs 465 crore).
The all-cash deal will expand Wipro’s high-end mortgage BPO business in the US and will be completed in the fourth quarter of FY14. Wipro will make an upfront payment of Rs 310 crore, while the rest will be paid over the next three years.
The Opus deal is the latest in a string of small acquisitions and partnerships by the Bangalore-based company, which has been looking to strengthen its financial services muscle.
According to Morgan Stanley note, the acquisition is unlikely to be a significant stock price driver for the company. The estimated revenue contribution is expected to be less than 1 per cent in FY15.
The deal will help strengthen the high-end BPO mortgage segment and Wipro may report strong US$ revenue growth of ~16 per cent, Y-o-Y, the brokerage said.
At 10:15 a.m.; the stock was at Rs 482.55, up 0.22 per cent, on the BSE. It touched a high of Rs 486.20 and a low of Rs 481.80 in trade today.
The all-cash deal will expand Wipro’s high-end mortgage BPO business in the US and will be completed in the fourth quarter of FY14. Wipro will make an upfront payment of Rs 310 crore, while the rest will be paid over the next three years.
The Opus deal is the latest in a string of small acquisitions and partnerships by the Bangalore-based company, which has been looking to strengthen its financial services muscle.
According to Morgan Stanley note, the acquisition is unlikely to be a significant stock price driver for the company. The estimated revenue contribution is expected to be less than 1 per cent in FY15.
The deal will help strengthen the high-end BPO mortgage segment and Wipro may report strong US$ revenue growth of ~16 per cent, Y-o-Y, the brokerage said.
At 10:15 a.m.; the stock was at Rs 482.55, up 0.22 per cent, on the BSE. It touched a high of Rs 486.20 and a low of Rs 481.80 in trade today.
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