Home-grown IT services firm Wipro announced that it will sell two of its business units to United States-based Alight for a cash consideration of up to $110 million (Rs 780 crore). Wipro will sell two of its units—Workday and Cornerstone On Demand—to the American firm with around 350 employees in the two teams moving to Alight.
The two firms “have agreed to expand their relationship by signing a definitive agreement to divest Wipro’s Workday and Cornerstone On Demand business to Alight for cash consideration of up to $110 million, of which $100 million would be payable at closing and the balance, $10 million, would be a deferred consideration payable at the end of 12 months based on the achievement of performance targets,” Wipro said in its exchange filing.
The transaction will see the transfer of business and employees in the US, the UK, Ireland, Portugal, India and certain other countries to Alight. The two units pulled in a combined standalone revenue of $49.7 million during 2017-18.
“The transaction will expand Alight’s capabilities and resources in HCM and financial solutions with Wipro’s advisory, implementation and integration offerings, strengthening its position as a large implementation partner in the Workday and Cornerstone On Demand ecosystems,” Wipro added.
The firm’s chief executive officer and executive director, Abidali Z Neemuchwala, said that this would help Wipro “sharpen its focus on key offerings where it has a leadership position in the market. We will continue to make significant investments to grow our cloud applications and platforms.”
The deal comes after the two firms closed a 10-year agreement first announced in September last year, and Wipro said that they would continue to explore additional strategic opportunities and possible alignment of portfolios.―New Indian Express