French multinational Capgemini has announced its acquisition of Mumbai-based WNS for $3.3 billion, marking a significant consolidation in the business process management (BPM) sector.
A Landmark Deal in BPM
Capgemini will acquire WNS in an all-cash transaction valued at $3.3 billion, equivalent to over Rs 28,000 crore. This strategic move offers WNS shareholders a substantial premium of $76.50 per share, which is 28% higher than the last 90-day average.
Both company boards have unanimously approved the acquisition. Capgemini anticipates the deal will boost its normalized earnings per share by 4% before synergies in 2026 and by 7% post-synergies in 2027. The transaction is projected to close by the end of the year, pending crucial regulatory and shareholder approvals.
Boosting Digital and AI Capabilities
This acquisition significantly expands Capgemini’s expertise in Digital Business Process Services (BPS) and Intelligent Operations. By integrating WNS, Capgemini aims to strengthen its leadership in a rapidly evolving market driven by artificial intelligence.
Capgemini has already been actively investing in AI, securing over €900 million in Gen AI bookings in 2024 through partnerships with tech giants like Microsoft, Google, AWS, Mistral AI, and NVIDIA. The combined entity would have generated €23.3 billion in revenue in 2024, with Digital BPS contributing €1.9 billion.
WNS: A Global and Indian Powerhouse
WNS is a prominent global BPM player with headquarters in Mumbai, New York, and London. The company boasts a robust presence in India, operating 25 delivery centers and employing nearly 39,700 people across the country.
WNS’s shares saw a significant jump of over 14% on the New York Stock Exchange following the announcement, reflecting strong investor confidence. Institutional investors hold approximately 90% stake in WNS.
India: The Strategic Core of WNS
Established by British Airways in Mumbai in 1996, WNS has made India the cornerstone of its global operations. Its Indian centers, located in major cities like Mumbai, Pune, Noida, Chennai, and Bengaluru, contribute over 50% of WNS’s worldwide revenue.
WNS has continually expanded its footprint in India, including a new 60,000-square-foot facility in Hyderabad opened in March 2024. The company’s Vizag delivery center also exemplifies this growth, scaling from fewer than 50 employees in 2012 to over 3,300 today.
These Indian operations include dedicated centers of excellence in key domains such as analytics, insurance, and healthcare, reinforcing India’s vital role in WNS’s service delivery model.
Leadership Perspectives
Capgemini CEO Aiman Ezzat stated that the acquisition positions the group to lead in Intelligent Operations, combining consulting, technology, and deep industry expertise. WNS CEO Keshav R. Murugesh highlighted the industry’s shift from automation to autonomy, with clients increasingly seeking to embed AI into their core operating models.
Financing the Acquisition
To fund the significant deal, Capgemini has secured €4 billion in bridge financing. This capital will cover the acquisition price, WNS’s existing gross debt, and the redemption of a €0.8 billion bond due in June 2025. The company plans to refinance this bridge loan using a mix of existing cash reserves and new debt issuance.
- Capgemini is acquiring WNS for $3.3 billion in an all-cash deal, marking a significant consolidation in the BPM industry.
- The acquisition is set to substantially enhance Capgemini’s capabilities in Digital BPS and AI-powered Intelligent Operations.
- WNS has a strong global footprint, with India serving as a critical hub that contributes over 50% of its global revenue.
- The deal is expected to boost Capgemini’s earnings per share and strengthen its position in the rapidly evolving AI-driven transformation market.
This strategic acquisition is poised to create a formidable leader in the Digital BPS space, uniquely positioned to guide enterprises through their crucial transformation into AI-powered businesses.
