Wipro and Alight expand relationship
Wipro Limited, a leading global information technology, consulting and business process services company, and Alight Solutions, a leader in technology-enabled health, wealth and Human Capital Management (HCM) solutions, have agreed to expand their relationship by signing a definitive agreement to divest Wipro’s Workday and Cornerstone OnDemand business to Alight for cash consideration of up to USD 110 million, of which USD 100 million would be payable at closing and the balance, USD 10 million, would be a deferred consideration payable at the end of 12 months based on the achievement of performance targets.
Following the closing of the 10-year agreement, previously announced in September 2018, Alight and Wipro continue to explore additional strategic opportunities and possible alignment of portfolios based on their respective strengths.
The divestiture agreement will result in approximately 350 employees in Wipro’s Workday and Cornerstone OnDemand teams moving to Alight. 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 OnDemand ecosystems.
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Wipro will continue with its focus and investment plans for the cloud applications and platforms space including growing and expanding its Salesforce business under the Appirio brand. Wipro will also continue to support Workday’s suite of solutions for application management, testing and integration services for its existing client base.
“We are delighted to expand our strategic relationship and collaboration with Alight. This agreement will enable Wipro to 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 business,” said Abidali Z. Neemuchwala, Chief Executive Officer and Executive Director, Wipro Limited.
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“This acquisition enhances both the depth and breadth of our HCM solutions, one of Alight’s fastest-growing businesses. We are proud to welcome so many talented employees with specialized skills and expertise to the Alight team,” said Chris Michalak, Chief Executive Officer, Alight Solutions.
In 2016, Wipro acquired the Workday and Cornerstone OnDemand business as part of its Appirio buyout. Wipro’s Workday and Cornerstone OnDemand business has multiple customers across the United States, Europe, Middle Eastand Africa with a track record of delivering over 500 Workday engagements and around 3,000 Cornerstone OnDemand projects.
The transaction is subject to receipt of regulatory approvals and customary closing conditions and is expected to close during the quarter ending 31 March 2019.
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