IT services company Wipro has bagged its largest-ever deal of over $1.5 billion from US-based company Alight Solutions LLC. In a statement on Sunday, the software services provider said it will deliver digital services to Illinois-based Alight Solutions in areas related to health, human resources and finance for a period of 10 years. Following the deal announcement, shares of the company surged almost 9% on Monday, marking the stock’s biggest one-day percentage gain in over 5 years.
Wipro’s biggest-ever contract: We take a look at 8 key things about the company’s over $1.5 billion deal
- The over $1.5 billion engagement from Alight Solutions LLC is the IT services major’s biggest deal till date. “This deal will result in revenues of USD 1.5 to 1.6 billion for Wipro over the tenure. This is Wipro’s largest win to date,” Wipro said in a statement on Sunday.
- Wipro will provide a comprehensive suite of solutions and services to Illinois-based Alight Solutions under the 10-year deal. “This engagement will enable the digital transformation of Alight’s offerings across health, wealth, HR and finance solutions, and enhance the employee experience of Alight’s clients by leveraging Wipro’s industry-leading strengths in digital technologies, cognitive automation and data analytics,” Wipro said in a statement.
- The current deal will come as a shot in the arm for Bengaluru-based Wipro. the company saw its first-quarter profits this fiscal grow over 2% to Rs 2,120 crore and revenue rising 4.72% to Rs 14,307 crore as compared to the previous year.
- Following the deal announcement, shares of Wipro witnessed its biggest intra-day percentage gain in over five years on the domestic bourses. On the BSE, share price of Wipro edged higher by 8.74% to an intra-day high of Rs 328 per share. The stock rose to a high of Rs 327 on the National Stock Exchange, up 8.55% — the stock’s biggest one-day gain since July 2013. The market capitalisation of the IT services major surged to Rs 1,42,892.03 crore. (Also read: Wipro top gainer on Sensex, Nifty)
- With this $1.5 billion deal, Wipro has joined the league of its bigger peer TataConsultancy Services in signing large deals. TCS has won three large deals totalling in revenue of over $5 billion in revenue since December 2017.
- Before this deal, Wipro’s biggest deal win was at $1.1 billion from Canada-based logistics and utilities firm ATCO in the year 2014. This is also the company’s first large deal after Abidali Z. Neemuchwala took charge as CEO of Wipro in 2016.
- Wipro had partnered Alight Solutions in July 2018 to take over the latter’s captive operations in India – Alight HR Services India – for a consideration of $117 million. “The transaction has been completed on August 31, 2018,” Wipro said in a separate BSE filing.
- Alight HR Services India, which was formerly known as Aon HR Services India, was set up in September 2016 and has about 9,000 employees. The company’s registered revenue was Rs 1,132 crore in 2017-18. It has centres in Gurugram, Noida, Mumbai and Chennai.