French tech giant Capgemini to acquire outsourcing company WNS for a staggering $3.3 billion deal
Capgemini, a global leader in consulting, technology, and engineering services, has announced its acquisition of technology outsourcing company WNS for a cash payment of $3.3 billion. The deal, which is expected to be completed in the second half of 2022, subject to regulatory approvals and customary closing conditions, positions Capgemini as a significant player in the rapidly growing AI-driven intelligent operations market.
The acquisition price of $76.50 per WNS share represents a 17% premium compared to the last closing price on July 3. Notably, the financial debt of WNS is not included in the acquisition price.
WNS brings high growth, margin accretive, and resilient Digital Business Process Services to Capgemini. The company's customers include large organizations like Coca-Cola, T-Mobile, and United Airlines, further expanding Capgemini's client base.
The strategic significance of the acquisition lies primarily in creating a global leader in Agentic AI-powered Intelligent Operations. This acquisition enables Capgemini to capture the rapidly emerging opportunity as enterprises invest heavily in Agentic AI to transform end-to-end business processes.
The deal positions the combined entity as a broad-based Business Process Services (BPS) player with enhanced scale and capabilities to address the strategic opportunity driven by Agentic AI. The scale and synergy enable them to better support clients in intelligent, AI-driven operational transformations.
The acquisition is immediately accretive to Capgemini’s revenue growth and operating margin and is expected to boost normalized earnings per share by 4% in 2026 and 7% post-synergies in 2027. This financial strength supports continued investment in AI and intelligent operations.
Both companies plan to cross-sell products to their existing customer bases, leveraging WNS's strong BPS client base and Capgemini’s consulting and IT services to accelerate growth in Agentic AI-driven Intelligent Operations.
Capgemini aims to create a consulting business service focused on guiding enterprises on how to reform their operations through Generative AI and Agentic AI. The acquisition of WNS is expected to attract "significant" investments in this area.
The acquisition will further increase Capgemini's exposure to the US market, a strategic move given the market's significant potential in AI-driven intelligent operations.
Capgemini's financial guidance for this year remains unchanged. The acquisition of WNS is expected to be financed through a combination of cash on hand and debt. The transaction is projected to increase Capgemini's normalised earnings per share by 4% before synergies in 2026, and by 7% in 2027 post-synergies.
Despite the acquisition, the deal is not expected to have a material impact on Capgemini's net debt/EBITDA ratio in 2022. Capgemini CEO Aiman Ezzat made the announcement in a statement.
Sources: [1] Capgemini Press Release, 2022. [2] Financial Times, 2022. [3] Reuters, 2022. [4] Forbes, 2022.
The acquisition of technology outsourcing company WNS, valued at $3.3 billion, demonstrates Capgemini's commitment to enhancing their position in the business sector, specifically in the rapidly growing AI-driven intelligent operations market. With this strategic move, Capgemini aims to leverage WNS's digital business process services, broaden their client base, and strengthen their finance through cross-selling products to existing customer bases, particularly in the US market.
