P. Sarojini
Mumbai, India (CWBN)_ Wipro has bagged a strategic digital and IT partnership contract from German-based METRO AG, which is a dominant multinational wholesale industry that is transforming the food service distribution sector, at an approximate deal value of about $700 million. In a regulatory submission to the stock exchanges, Wipro said that the projected deal value for the span of the first 5 years is around $700 million.
With the option of a prolongation of up to 4 extra years, the contract may be up to $1 billion in future investment. Wipro said, “The takeover is subject to customary closing conditions and regulatory approvals and is expected to close on or before April 30, 2021”.
Thierry Delaporte, Chief Executive Officer and Managing Director, Wipro Limited spoke about the similarities and relationship between the two companies. He 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 part of this deal, Wipro will take control over the IT units of METRO AG, i.e., METRO-NOM GMBH in Germany and METRO Systems Romania S.R.L. As per the deal, Wipro will deliver a complete program for the transformation of technology, engineering and solutions for METRO as it functions as a complete wholesale provider in the hotel, restaurant and catering food sector, powered by quality, adaptability and versatility. The following services are included in Wipro’s transformation program: cloud, data center applications, workplace and network services.
