In a deal worth €40Mn, Bengaluru based software giant Wipro will be acquiring the IT units of German firm Metro AG in a multi-year technology transformation deal with a revenue potential of $1Bn. Subject to customary closing conditions and regulatory approvals, the acquisition is expected to take place on or before April 30, 2021.
This is the biggest deal of Wipro ever since Thierry Delaporte took over as CEO.
According to a statement, Wipro will be acquiring IT assets of Metro across Germany, Romania and India. 1,300 employees of Metro will also be moving to Wipro. The multi-year deal is expected to generate $700 Mn in the first five years, and may likely extend by a further four years, the statement said.
Timo Salzsieder, CIO at Metro AG, believes that this move would allow the organization to simplify and streamline its IT landscape, and gain access to innovation and the best digital practices.
“The Metronomians who are transferring across to Wipro are going to have access to leading edge innovations that will accelerate their careers,” added Salzsieder.
As per the deal, Wipro will deliver a complete technology, engineering and solutions transformation programme for Metro as it positions itself as 360-degree wholesale provider in the hotel, restaurant and catering food industry. Along with offering application development and operations to provide an integrated, flexible and robust digital infrastructure to help drive Metro’s transformation, Wipro’s programme would also encompass cloud, data centre services, workplace and network services.
“Wipro’s role is to make that transformation efficient and effective,” noted Wipro CEO Delaporte, adding, “Equally important for us is welcoming 1,300 new colleagues to Wipro and ensuring this move is positive and empowering for each of them.”
In order to support Metro and other clients in the region, the IT major is also looking to launch a Digital Innovation Hub in Düsseldorf, Germany. As per a company statement, the proposed Digital Innovation Hub will serve as Wipro’s flagship centre in Europe and enable organizations to cross-skill and upskill, besides supporting talent development in the local communities. “The Digital Innovation Hub will aim to galvanize adoption of new skills and technologies by companies to innovate and re-imagine their products and services, improve operational efficiencies, and drive customer and employee delight,” the statement said.