Wipro jumped 3.76% to Rs 377.70 after the company announced a strategic digital and IT partnership deal with Metro AG.
As a part of this transaction, Wipro will take over the IT units of Metro AG - Metro-Nom GMBH in Germany and Metro Systems Romania S.R.L. Through this partnership, more than 1,300 employees across Germany, Romania and India will transfer to Wipro, providing them with new opportunities to advance their careers, access innovation, work with digital technologies and adopt new ways of working that enable agility, speed and scale in engineering.
The estimated deal value for the duration of the first five 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 AG 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, data center services, workplace and network services, along with application development and operations to provide an integrated, flexible and robust digital infrastructure to help drive Metro AG's transformation agenda, as per the company's exchange filing.
As previously announced, Wipro also plans to launch a Digital Innovation Hub in Dseldorf, Germany to support Metro and other clients in the region.
Separately, Wipro announced that its proposed share buyback offer will open on Tuesday, 29 December 2020 and close on Monday, 11 January 2021. The company plans to buyback upto 23.75 crore equity shares at Rs 400 each.
Wipro is a global information technology, consulting and business process services company. Its consolidated net profit rose 3.15% to Rs 2,465.70 crore on a 1.35% increase in net sales to Rs 15,114.50 crore in Q2 FY21 over Q1 FY21.
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