Wipro takes over IT units and staff from Metro AG for $1 billion


Wipro takes over IT units and staff from Metro AG for $1 billion

India’s largest software exporter firm- Wipro- has recently announced taking over the IT units of German wholesaler Metro AG for a transaction deal of $1 billion for a span of nine years. It has been reported that Wipro would take control of Metro’s IT units in Romania and Germany under the transaction deal.

Moreover, the firm’s more than over 1,300 employees across these countries would be transferred to Wipro. Apparently, the outsourcing deal, worth 552 million euros, has been finalized for five years, with a potential extension of four years at a potential valuation of 745 million euros.

This deal would see the leading IT firm (Wipro) provide a technology transformation at Metro, spanning datacenter services, cloud, application development, and network services.

Speaking on the novel move, CIO at Metro- Timo Salzsieder reportedly cited that the wholesaler company’s partnership with Wipro would allow them to simplify as well as streamline its IT landscape while providing it a legal access to innovation and best in class digital practices.

He added that adding their company’s staff to Wipro would offer access to leading edge innovations which is essentially required to accelerate the careers of these employees.

Speculations have it that this strategic move stands to be Wipro’s first acquisition within six months, as it looks forward to joining the bigger rival-TCS Ltd. in taking over the IT units of a German company. In October this year, Wipro declared the acquisition of California headquartered Eximius Design for an outstanding valuation of USD 80 million in an all-cash deal and also taking over a Chennai-based company- Encore Theme Technologies Pvt. Ltd., at a deal of USD 12.8 million.

Source Credit: https://www.computerweekly.com/news/252494070/Wipro-acquires-IT-units-at-German-wholesalers

 



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