Wipro to takeover IT operations of German firm in $700m deal

Bengaluru, Dec 22 : Global software major Wipro on Tuesday announced that its is taking over the IT operations of German food services firm Metro AG in a $700 million (Rs 5,171 crore) deal.
“As a part of the transaction, Wipro will take over the IT units of Metro AG – Metro-Nom – in Germany and Metro Systems in Romania,” said the city-based IT firm in a statement.
The deal value for the first five years is worth $700 million, with a potential to go up to $1 billion if extended by another four years.
The takeover is expected to close by April 30, 2021. The transaction was assisted by the global strategy consulting firm EY-Parthenon.
“As part of the deal, 1,300 Metro employees in Germany, Romania and India will be transferred to Wipro, providing them with opportunities to advance their careers, access innovation, work with digital technologies and adopt new ways of working for agility, speed and scale in engineering,” said the statement.
Wipro will deliver technology, engineering and solutions to Metro to be a wholesale provider in the hotel, restaurant and catering industry worldiwide.