Bengaluru (IANS) 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.
"Our programme will encompass Cloud, data centre services, workplace and network services, with application development and operations to provide an integrated, flexible and robust digital infrastructure to help drive Metro's transformation agenda," said the software vendor.
The Metronomians who will be transferred to Wipro will have access to innovations that will accelerate their careers.
"Partnering with Wipro allows us to streamline our IT operations and gives us access to innovation and best digital practices," said the Chief Information Officer at Metro, Timo Salzsieder, in the statement.
Wipro Chief Executive Thierry Delaporte said Metro was focused on leveraging digital transformation for competitive advantage.
"Our role is to make the transformation effective. Equally important is welcoming 1,300 Metro colleagues and ensuring their empowerment," said Delaporte.
Wipro plans to set up a digital innovation hub at Dusseldorf in Germany to support Metro and other clients in the region.
"The hub will serve as our flagship centre in Europe and enable organisations to cross skill and upskill, besides supporting talent development in local communities," said the statement.