The French IT services group Capgemini (CAPP.PA) announced on Monday that it has agreed to pay $3.3 billion in cash to acquire the technology outsourcing company WNS (WNS.N) in order to increase the variety of AI solutions it provides to businesses. Through the agreement, Capgemini will be able to develop a consulting business service that will assist businesses employ artificial intelligence—specifically, generative and agentic AI—to improve their operations and cost efficiency. The company anticipates that this service will draw large investments.
According to Capgemini, the purchase price, which translates to $76.50 per WNS share, is 17% higher than their most recent closing price on July 3 and excludes WNS’s debt. Reuters initially revealed its interest in India-based WNS in April. WNS offers data analytics and business process outsourcing services.
“WNS brings… its high growth, margin accretive and resilient Digital Business Process Services… while further increasing our exposure to the US market,” stated Aiman Ezzat, CEO of Capgemini, in a press release. Customers of WNS include major corporations like United Airlines (UAL.O), T-Mobile (TMUS.O), and Coca-Cola (KO.N), opens new tab.
Ezzat stated during a conference call with investors and the public that the acquisition will instantly open up prospects for cross-selling between the two businesses, primarily in the United States and Britain. By the end of 2025, Capgemini anticipates that the purchase will be finalized and will instantly increase its operating margin and revenue. However, after the news, its shares dropped by 5%. Morgan Stanley analysts said the deal would limit its balance sheet flexibility without significantly affecting financials, making it the biggest losers on Europe’s benchmark STOXX 600 index (.STOXX), which opens a new tab as of 1024 GMT.
According to a research note by the analysts, some investors are particularly worried about how Gen AI can affect the business process outsourcing (BPO) industry, which is generally staffed heavily. This might hurt Capgemini’s earnings and expose it to new competitors. “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,” they stated.
