Wipro to take over IT units of METRO AG with 1,300 employees
Wipro Limited has announced a significant strategic digital and IT partnership deal with METRO AG, the leading global wholesale company that is redefining the foodservice distribution industry.
As a part of this transaction, Wipro will take over the IT units of METRO AG — METRO-NOM GMBH in Germany and METRO Systems Romania S.R.L. Through this partnership, more than 1,300 employees across Germany, Romania and India will transfer to Wipro, providing them with new opportunities to advance their careers, access innovation, work with leading digital technologies and adopt new ways of working that enable agility, speed and scale in engineering.
The estimated deal value for the duration of the first 5 years is approximately $700 million. With the intention to extend up to 4 additional years, it can be a potential spend of up to $1 billion.
Wipro will deliver a complete technology, engineering, and solutions transformation program for METRO as it positions itself as a Wholesale 360-degree provider in the hotel, restaurant, and catering food industry fuelled by quality, focus, and flexibility.
Wipro’s transformation program will encompass cloud, data center services, workplace and network services, along with application development and operations to provide an integrated, flexible and robust digital infrastructure to help drive METRO’s transformation agenda.
Thierry Delaporte, Chief Executive Officer and Managing Director, Wipro Limited said, “Like us, METRO AG is focused on leveraging digital transformation for competitive advantage. Wipro’s role is to make that transformation efficient and effective. Equally important for us is welcoming 1,300 new colleagues to Wipro and ensuring this move is positive and empowering for each of them. Wipro and METRO share a great deal in terms of culture and values, which has guided our discussions throughout and led to the formation of the joint Transformation and Co-Innovation Council. Our relationship with METRO is a significant and strategic partnership.”
The take over is subject to customary closing conditions and regulatory approvals and is expected to close on or before April 30, 2021. The transaction was assisted by the global strategy consulting firm EY-Parthenon.