Key Points:

Capgemini is taking over WNS for a cash purchase consideration of $3.3 billion per $76.50 share.

It would contribute 4% to the 2026 earnings of Capgemini and 7% in 2027 on a post-integration basis.

Key Background:

WNS' acquisition by Capgemini is in line with its journey to become the leader in AI-driven digital transformation in the market. With the world's industries looking for AI-driven smart business operations, Capgemini is well placed to provide end-to-end capabilities from consulting and IT to business process optimization with the latest AI technology.

WNS, with its established reputation for providing business process services in industries like finance, insurance, healthcare, and travel, is a perfect fit for the growth strategy of Capgemini. Its long-term contract model and recurring revenue model provide financial stability and feed into the international operations of Capgemini. WNS has experienced steady growth over the last three years with impressive operational efficiency and client commitment.

The $76.50-a-share acquisition is 28% of WNS's 90-day average and 17% of its closing share price. The premium is high and an indication of the value Capgemini has to pay to acquire the strategic advantage WNS gets from its global growth. It is also worth for WNS shareholders, who receive the advantage of liquidity in one transaction.

Capgemini puts the transaction synergies at €100–140 million of revenue synergies through cross-selling and up to €70 million of recurring cost savings in 2027. All the cost savings result from best-in-class operations, shared platforms, and shared back-end services.

A key benefit of the acquisition is the expansion of Capgemini’s footprint in North America, particularly in the U.S. WNS’s strong presence and client relationships in the region will be instrumental in growing Capgemini’s influence across high-demand sectors. Moreover, the integration of WNS’s AI-enabled platforms will further accelerate Capgemini’s innovation roadmap.

The future direction of Capgemini is to be a leader in making old-fashioned business operations scalable, AI-enabled digital businesses. The WNS strategic acquisition strengthens the ability of Capgemini to offer smart, quick-responding services that are capable of fulfilling changing requirements of global businesses in the age of AI.