Source: LiveMint.com, Jan 11, 2017
Mumbai: Business process management company WNS Global Services on Tuesday announced acquisition of US-based Denali Sourcing Services for $40 million to improve its capabilities in the sourcing and procurement capabilities.
“Denali will play a very complimentary role in our offerings in the finance and accounting space,” WNS chief executive officer Keshav Murugesh told PTI in a telephonic interview.
He said WNS has been working with Denali, which is present in the fastest growing procurement space valued at $3.5 billion a year as a strategic partner for the last two and a half years for rendering various services to the clients.
Stating that the acquisition of the over 10-year-old company is accretive both from a revenue and margins perspective, Murugesh said all the 200 staffers of Denali including the founders will be absorbed into WNS.
The New York Stock Exchange-listed WNS has signed a definitive agreement to acquire Denali and expects to get all the necessary approvals to complete the acquisition by the month-end.
Denali is a profit-making company clocking revenues of up to $18 million annually and it will help WNS’ fourth quarter topline by over $3 million. WNS will be funding the acquisition through debt, Murugesh said.
Denali gets over 95% of its revenue from the US and 90% of it is recurring in nature.
Calling it as a “good strategic and cultural fit”, Denali’s founder and chief executive Alpar Kamber said, “We are confident that WNS’ capabilities, market presence and customer base will allow us to drive deeper client value, expand our reach, and create new offerings.” Murugesh said half of Denali’s employees are based in the country, while the rest is divided between the US and Turkey.
When asked about acquiring a company dependent on the US at a time when the fears of a shift to protectionist policies is high, Murugesh said WNS welcomes the incoming US president Donald Trump and has been helping create jobs in the US.