Wipro inks digital & IT deal with German company METRO AG; stock jumps over 3 per cent

On Tuesday, Wipro Ltd announced that it has entered into a strategic digital and IT deal with METRO-NOM GMBH and METRO Systems Romania SRL thereby, helping METRO AG to streamline its business while focussing on the wholesale food sector. 

METRO AG is a well-known and a leading global wholesale company, which is redefining the food distribution industry. Wipro has planned to take over the IT units of METRO AG — METRO-NOM GMBH in Germany as well as METRO Systems Romania SRL. 

This new deal will open new employment and career enhancement opportunities to over 1,300 employees across Germany, Romania & India. The employees will be able to access new innovations, leading digital technologies, and adopt new ways of working, which will further help them to scale up in the area of engineering. 

The deal value is estimated to be approximately US $700 million for the duration of the first 5 years. If it is extended for 4 more years, the figure of potential spend may jump up to US $1 billion. Wipro will be providing cloud, data centre services, workplace, and network services, as well as application development & operations to provide an integrated, flexible, and robust digital infrastructure to METRO, which poses as a 360-degree wholesale provider in the hotel & restaurant industry. A joint transformation office and innovation council are at the base of the partnership, which would further ensure collaborative innovation throughout the partnership. 

Wipro Ltd is a leading global information technology consulting & business service provider. The company has over 1,80,000 employees, serving clients across six continents. 

At 10.54 am on Wednesday, Wipro's share was trading at Rs 376, up by 3.30 per cent. It is quite close to its intraday high of Rs 377.50. Meanwhile, it has a 52-week high of Rs 381.70 on BSE.