Wipro Strikes IT & Digital Partnership Deal Worth $700 Million With METRO AG
CEOInsights Team, 0
As a part of the deal, Wipro will take over the IT units of METRO AG – METRO-NOM GMBH in Germany and METRO Systems Romania S.R.L. The partnership will lead to a transfer of nearly 1,300 employees across Germany, Romania and India to Wipro.
The takeover 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.
The estimated deal value for the duration of five years is approximately $700 million, which could be a potential spent of up to $1 billion if its extended to four more years. Wipro will deliver a complete technology, engineering and solutions transformation program for METRO, which positions as a Wholesale 360-degree provider in the hotel, restaurant, and catering food industry. Wipro’s transformation program will have cloud, data centre services, workplace and network services included along with application development and operations. This will provide an integrated, flexible and robust digital infrastructure to help drive METRO’s transformation agenda.
“We are at a stage where we want to focus on the activities that are going to give us the strongest possible competitive advantage and to do that, we need to be
The partnership will lead to a transfer of nearly 1,300 employees across Germany, Romania and India to Wipro
confident in the digital infrastructure that underpins our growth. Partnering with Wipro allows us to simplify and streamline our IT landscape, and critically gives us access to innovation and the best digital practices,” commented Timo Salzsieder, CIO, METRO AG. “The Metronomians who are transferring across to Wipro are going to have access to leading edge innovations that will accelerate their careers. I look forward to the continued close collaboration and partnership with the Metronomians who will continue to support our IT needs in 25 METRO countries.”
This partnership will lead to the formation of a joint Transformation Office and Innovation Council, which will guide the businesses through the transformation and ensure collaborative innovation throughout the partnership.
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.”
Wipro had earlier announced its plans to launch a Digital Innovation Hub in Dusseldorf, Germany to support METRO and other clients in the region, which will serve as Wipro’s flagship centre in Europe and enable organizations to cross skill and upskill, besides supporting talent development in local communities.