Wipro said it would sell its Workday and Cornerstone OnDemand practices, acquired through Appirio buyout, to Alight for $110 million. The Bengaluru-headquartered IT services major the divestiture agreement will result in approximately 350 employees in Wipro’s Workday and Cornerstone OnDemand teams moving to Alight.
Wipro said in a press release that a definitive agreement between the company and Alight Solutions has been signed to divest this business to Alight for cash consideration of up to $110 million. Of the total,
$100 million would be payable at the closure of the agreement closing and the rest $10 million would paid at the end of 12 months based on the achievement.
While Alight has strong focus on human resource management services; Workday and Cornerstone OnDemand both have dedicated solutions HR services.
Wipro and Alight signed an agreement last year to take over Alight’s India business. As part of this, Wipro said it received a deal worth up to $1.5 to $1.6 billion spread over 10 years through revenue flow from Alight’s India units.
“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,” said Wipro in its release.
Wipro said it would 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; while the company would also continue to support Workday’s suite of solutions for application management, testing and integration services for its existing client base.
“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,” Abidali Neemuchwala, chief executive officer and executive director, Wipro, was quoted in the release.