WNS Ltd, a Nasdaq-listed and Mumbai-headquartered business process management (BPM) company, has sealed a deal to acquire US-based Denali Sourcing Services for $40 million. WNS said it would fund the acquisition, its third-biggest ever, through long-term debt. The deal is expected to close this month.
WNS said Denali would contribute $3 million in revenue to the company in financial year ending March, 2017.
“The acquisition of Denali Sourcing Services adds a strategic procurement capability to our existing finance and accounting solutions.
Denali is a unique asset which we believe helps position WNS as an industry leader in finance and accounting, and enhances our industry-specific solutions,” said Keshav Murugesh, chief executive officer, WNS.
WNS, which has done a number of acquisitions in the past, including Trinity Partners in 2005, Marketics Technologies for $65 million in 2007 and insurance claims processor Call 24/7 for $16 million in 2008, has not been very active on the acquisition front in recent years. It revisited its inorganic expansion strategy last year.
WNS acquired Value Edge Research Services Pvt Ltd in mid-2016 for $17.5 million.
"Having successfully worked together over the past three years, we believe this combination is a good strategic and cultural fit,” said Alpar Kamber, founder and CEO, Denali Sourcing Services.
Denali specialises solely in providing BPM solutions related to strategic procurement, and provides sourcing and procurement services to many leading brands worldwide, said a release. It provides comprehensive source-to-contract solutions, has a proprietary system to perform spend analytics and offers a procurement management and tracking platform SmarTrak.
The WNS stock rose marginally after the acquisition was announced on Wednesday. WNS is the fifth largest BPO company in India after Genpact and the BPO arms of TCS, Wipro and Infosys.
As of September 30, 2016, WNS had 31,719 professionals across 42 delivery centres worldwide, including China, Costa Rica, India, the Philippines, Poland, Romania, South Africa, Sri Lanka, the UK and the US. The company had earlier said it expected revenue in the range of $551-567 million in the current financial year, up from $531.0 million in financial year 2016.
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