Alight to acquire Workday and Cornerstone from Wipro for $110mn

The transaction is subject to receipt of regulatory approvals and customary closing conditions and is expected to close during the quarter ending March 31, 2019.

Feb 28, 2019 08:02 IST India Infoline News Service

Wipro
Wipro and Alight 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 $110mn, of which $100mn would be payable at closing and the balance, $10mn, 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.

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.

The divestiture agreement will result in ~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.

The transaction is subject to receipt of regulatory approvals and customary closing conditions and is expected to close during the quarter ending March 31, 2019.

"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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