The Bengaluru-based IT services provider will pay €40 million to acquire the IT assets of Metro in Germany, Romania and India, and take over 1,300 employees, according to a statement on Tuesday.
Wipro said it expects the deal to be worth $700 million in the first five years, and may likely extend by a further four years, taking the potential spend to $1 billion.
Wipro would 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, it said.
Wipro’s transformation programme would encompass cloud, data centre 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.
“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,” said Delaporte.
The Indian IT company also plans to launch a Digital Innovation Hub in Düsseldorf, Germany, to support Metro and other clients in the region.
“The proposed Digital Innovation Hub will serve as Wipro’s flagship centre in Europe and enable organisations to cross-skill and upskill, besides supporting talent development in the local communities,” the company said. The Digital Innovation Hub will aim to galvanise 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 takeover is expected to close on or before April 30, 2021, subject to customary closing conditions and regulatory approvals.
Timo Salzsieder, CIO at Metro AG, said partnering with Wipro would allow it to simplify and streamline the IT landscape, and give 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,” he added.
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