As part of the deal, more than 1,300 employees across the IT units of the wholesaler from Germany, Romania and India will transfer to Wipro.
The estimated deal value for the duration of the first five years is approximately $700 million. With the intention to extend up to four additional years, it can be a potential spend of up to $1 billion, Wipro said.
“We are at a stage where we want to focus on the activities that are going to give us the strongest possible competitive advantage and to do that, we need to be confident in the digital infrastructure that underpins our growth. Partnering with Wipro allows us to simplify and streamline our IT landscape, and critically gives us access to innovation and the best digital practices,” said Timo Salzsieder, Chief Information Officer of METRO AG.
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 fueled by quality, focus and flexibility.
Wipro’s transformation program will encompass cloud, data center 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 agenda.
The takeover is expected to be complete on or before April 30, 2021.