IT major Wipro's share declined 4 percent intraday today after the company signed a definitive agreement to acquire London-headquartered management and technology consultancy company Capco for  USD1.45 billion. The share slipped 4 percent to Rs 421.30 against the previous close of Rs 438.80 on the National stock exchange

The stock has fallen after 4 days of consecutive gain. The IT share has gained 84.15 percent in one year and risen 9.46 percent since the beginning of this year.  The market cap of the firm fell to Rs 2.31 lakh crore.

"We are very excited to welcome Capco's admirable leadership team and employees, and global clients, to Wipro. Together, we can deliver high-end consulting and technology transformations, and operations offerings to our clients," Thierry Delaporte, CEO and Managing Director of Wipro Limited, said.

Meantime, Brokerage Credit Suisse was neutral, after the deal with a target price of Rs 500.It said the firm took right steps towards its transformation journey; however, benefits may take some time to reflect.

Morgan Stanley is underweight on the stock with a target price of Rs 410. It said the deal comes as a surprise given size & integration challenges given its large onsite presence. CLSA gave a target price of Rs 460 on the stock.  However, its integration could be tricky, the brokerage firm said. The company will need  USD41 million synergies to make the deal EPS accretive.

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