Wipro has bagged a strategic digital and IT partnership deal from METRO AG, a leading global wholesale company that is redefining the food service distribution industry. The estimated deal value for the duration of the first 5 years is about $700 million, Wipro said in a regulatory filing to the stock exchanges. With the possibility of an extension up to 4 additional years, the deal can be a potential spend of up to $1 billion.
"The takeover is subject to customary closing conditions and regulatory approvals and is expected to close on or before April 30, 2021," Wipro added.
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 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."
As a part of this transaction, Wipro will take over the IT units of METRO AG - METRO-NOM GMBH in Germany and METRO Systems Romania S.R.L.
Wipro will deliver a complete technology, engineering and solutions transformation program for METRO as it positions itself as a Wholesale 360-degree provider in the hotel, restaurant and catering food industry fuelled by quality, focus and flexibility. Wipro's transformation program will include cloud, data center services, workplace and network services.
Wipro was outperforming the broader markets in early trades on the back of the deal announcement. At 9:40 am, the shares of Wipro were trading higher by 3.2 per cent at Rs 375.20 to top the gainer's list on the BSE as against the 0.1 per cent rise in the benchmark indices.