In a $700 million IT partnership deal, Wipro has acquired German multinational company, Metro AG. As a result, around 1,300 employees from the company will move to Wipro.
Wipro in a public statement revealed the estimates of the first five years of the deal amounts to $700 million. The deal has the potential to spend up to $1 billion if Wipro is able to extend the deal for four more years.
Workers from Romania, India and Germany will move to Wipro with more opportunities for career advancement for them. There will be able to innovate, work with emerging digital tech and adapt to new ways of work that enhance speed, agility and scaling in engineering.
As Metro AG is set to provide all rounded services in the hotel, restaurant and catering industry, Wipro will help out with the logistics part. Wipro’s tech solution for Metro AG will range from cloud, data service, network and workplace services, with application development and operations to provide better, more agile and healthier digital infrastructure to support the German company’s digital transformation agenda.
This partnership with Wipro will help Metro AG streamline and simplify its tech-transformation goals. Wipro had earlier announced that it would launch a Digital Innovation Hub in Düsseldorf, Germany to support its clients in the country. This hub will serve as its flagship centre in Europe to enable organisations easy access to upskill and cross-skill and support local talent growth.
The transaction was overseen by EY-Parthenon, a global strategy-consulting firm. The takeover will close on or before the end of April 2021 under closing conditions and regulatory approvals.