Wipro and METRO AG in $700 million worth digital, IT deal

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Bangalore: Wipro and METRO AG have signed a strategic digital and IT deal worth $700 million. As part of this deal, Wipro will take over the two IT units of METRO AG including Germany based METRO-NOM GmbH and METRO Systems Romania S.R.L.

METRO AG will transfer its 1,300 plus employees across Germany, Romania and India to Wipro as per the deal. Theses staff will get new opportunities to advance their careers, access innovation, work with leading digital technologies and adopt new working styles.

The estimated deal value for the duration of the first 5 years is approximately $700 million. With the intention to extend up to 4 additional years, it can be a potential spend of up to $1 billion.

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 encompass cloud, datacentre services, workplace and network service. Along with application development and operations to provide an integrated, flexible and robust digital infrastructure to help drive METRO’s transformation agenda.

“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, CIO – METRO AG.

“The Metronomians who are transferring across to Wipro are going to have access to leading edge innovations that will accelerate their careers. I look forward to the continued close collaboration and partnership with the Metronomians who will continue to support our IT needs in 25 METRO countries,” added Salzsieder.

A joint Transformation Office and Innovation Council will guide the businesses through the transformation and ensure collaborative innovation throughout the partnership between the two companies..

“Like us, METRO AG is focused on leveraging digital transformation for competitive advantage. 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 Thierry Delaporte, CEO and MD – Wipro Limited.

“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,” added Delaporte.

As previously announced, Wipro 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 local communities.

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.

It will improve operational efficiencies, and drive customer and employee delight, thereby transforming their ability to compete and thrive in the market.

The deal is subject to customary closing conditions and regulatory approvals and is expected to close on or before April 30, 2021. Global strategy consulting firm EY-Parthenon assisted this transaction.

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