Information technology (IT) services major Wipro said it is set to acquire Encore Theme Technologies, a software-as-service (SaaS) and cloud solutions provider for the financial services sector, for upto Rs 95 crore ($12.8 million at current exchange rates).
The transaction is expected to be completed by December 31, 2020, subject to customary closing conditions, the Bengaluru-based company said.
Founded in 2006, Encore Theme provides trade finance solutions, developed by UK financial technology firm Finastra, to clients in India, the Middle East, Africa and the Asia Pacific region. With over 140 employees, the firm claims to have delivered over 75 Finastra trade finance projects to banks across the aforementioned regions so far.
“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,” RK Kanthimathinathan, founder, managing director and CEO of the Chennai-based firm, said.
Wipro said that trade finance is a strong revenue generation stream with a high-cost base structure, where technology plays a large part in driving growth. Already a global Finastra partner, Wipro said it will utilise Encore Theme’s offerings to enable modernisation for financial institutions.
“They bring a wealth of trade finance product expertise, coupled with significant delivery experience of Finastra solutions for both trade finance and cash management implementations. This will help strengthen our position as a dominant player across the globe,” Angan Guha, senior vice president and global head of BFSI at Wipro, said.
The acquisition, according to Denise Parker, senior vice president of partners and ecosystem at Finastra, will combine Wipro’s global managed services capabilities with Encore’s domain trade and cash management expertise.
“It will drive value for customers via Finastra’s software, like Fusion Trade Innovation... enabling banks to drive efficiencies and to reduce cost,” Parker said.