France’s Capgemini has agreed to buy technology outsourcing firm WNS for $3.3 billion in cash. The deal will expand the range of AI tools Capgemini offers to companies. The purchase price of $76.50 per WNS share represents a 17% premium compared to their last closing price on July 3.
The price does not include WNS’s financial debt. Capgemini CEO Aiman Ezzat said in a press statement, “WNS brings its high growth, margin accretive and resilient Digital Business Process Services while further increasing our exposure to the US market.” WNS’s customers include large organizations such as Coca-Cola, T-Mobile, and United Airlines. On a conference call, Ezzat said the acquisition would immediately create cross-selling opportunities between the two companies, mainly in the U.S. and Britain.
Capgemini expects the deal to be closed by the end of 2025 and be immediately accretive to its revenue and operating margin.
Capgemini’s WNS acquisition details
However, Capgemini’s shares fell around 5% following the news.
Some investors are concerned that Gen AI could impact the typically staff-intensive business process outsourcing (BPO) market, which could bite into Capgemini’s revenues and expose it to new competition. Morgan Stanley analysts said in a research note, “We expect investors to be able to see the opportunity that could come from disrupting BPO with Gen AI but think some evidence will be needed to convince the market WNS is the right vehicle.”
The acquisition is expected to be immediately beneficial to Capgemini’s revenue growth and operating margin, with an anticipated 4% accretion to normalized EPS in 2026, and 7% post-synergies in 2027. Both companies’ Boards of Directors have unanimously approved the transaction, with closure expected by the end of the year.
As of the end of March, WNS had almost 65,000 employees across 64 delivery centers worldwide. The deal has received unanimous approval from the boards of both firms and is expected to close by the end of the year, pending shareholder and regulatory approval. At around 10am CEST, Capgemini’s share price was down approximately 3.5% at 140.10 on Monday morning.
