Wipro Limited will sell its Workday and Cornerstone OnDemand business to Alight Solutions for about $110 million in cash.
The companies said the deal will expand Alight’s capabilities in HCM and financial solutions by bringing in Wipro’s advisory, implementation and integration offerings. That will strengthen its position as an implementation partner in the Workday and Cornerstone ecosystems..@Wipro & @AlightSolutions say their Workday/Cornerstone deal will strengthen their strategic relationship. #HRTech Click To Tweet
Wipro plans to maintain its focus and investment plans for cloud applications and platforms, including expanding its Salesforce business under the Appirio brand. The company will continue to support Workday’s suite of tools for application management, testing and integration for its existing client base.
In 2016, Wipro acquired the Workday and Cornerstone OnDemand business as part of its Appirio buyout. Today, the business has multiple customers across the U.S., Europe, Middle East and Africa. It has completed more than 500 Workday and some 3,000 Cornerstone projects.
The companies positioned the transaction as strengthening their existing strategic relationship. “This acquisition enhances both the depth and breadth of our HCM solutions, one of Alight’s fastest-growing businesses,” said Alight CEO Chris Michalak.
Abidali Z. Neemuchwala, Wipro’s CEO, said his company will continue to make significant investments in its cloud applications and platforms business.
In September, the companies announced a 10-year strategic agreement under which they would jointly explore new opportunities and possibly align their portfolios based on their respective strengths. In July, Wipro paid $117 million in cash for Alight’s business in India.
According to Bloomberg, the Workday/Cornerstone business generated about $50 million in 2017-2018, which represented just 0.6 percent of Wipro’s consolidated revenue.
The transaction, which is subject to regulatory approvals and closing conditions, is expected to close during the quarter ending March 31, 2019.
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