New Delhi: IT services major Wipro Limited has said that it will divest Wipro’s Workday and Cornerstone OnDemand business to Alight for cash consideration of up to USD 110 million.
Wipro said that 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, Wipro said in an official statement.
The divestiture agreement will result in approximately 350 employees in Wipro's Workday and Cornerstone OnDemand teams moving to Alight.
“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,” it added.
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 East and 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 March 31, 2019.