Capgemini Acquires WNS for $3.3 Billion to Boost AI-Driven Operations

Capgemini, a leading French business and technology transformation company, has entered into a definitive agreement to acquire WNS, a digital-led business transformation and services firm, for $3.3 billion in cash. Announced on July 7, 2025, the deal aims to position Capgemini as a global leader in AI-powered intelligent operations, leveraging WNS’s expertise in digital business process services (BPS).

Strategic Acquisition Details

Capgemini will acquire US-listed WNS for $76.50 per share, offering a 28% premium over the 90-day average share price, 27% over the 30-day average, and 17% over the closing price on July 3, 2025. The total cash consideration of $3.3 billion excludes WNS’s net financial debt of approximately $0.4 billion. To finance the deal, Capgemini has secured €4 billion in bridge financing, to be refinanced with €1 billion in available cash and additional debt issuance. The transaction, unanimously approved by both companies’ boards, is expected to close by the end of 2025, pending regulatory and shareholder approvals.

Enhancing AI and Intelligent Operations

The acquisition strengthens Capgemini’s capabilities in the rapidly growing Digital BPS market, projected to see 7-11% revenue growth for WNS in FY26. Aiman Ezzat, CEO of Capgemini, stated, “This acquisition provides the scale and vertical sector expertise to capture the strategic opportunity created by the shift from traditional BPS to Agentic AI-powered Intelligent Operations.” WNS’s expertise in data analytics, finance and accounting, and industry-specific solutions complements Capgemini’s AI investments, including €900 million in Gen AI bookings in 2024 and partnerships with Microsoft, Google, AWS, Mistral AI, and NVIDIA.

Keshav R. Murugesh, CEO of WNS, emphasized, “By combining our domain expertise with Capgemini’s global reach and advanced AI capabilities, we are creating a powerful proposition for enterprise reinvention, enabling next-generation, data-driven operations across sectors.” The deal is expected to be accretive to Capgemini’s normalized earnings per share (EPS) by 4% in 2026 before synergies and 7% in 2027 post-synergies.

Market and Competitive Impact

With combined 2024 revenues of €1.9 billion in Digital BPS, the acquisition positions Capgemini to challenge the dominance of Big 4 firms (Deloitte, PwC, EY, KPMG) in consulting and technology services. Analysts from HFS Research note that WNS’s client base, including Coca-Cola, T-Mobile, and United Airlines, offers cross-selling opportunities, particularly in the US and UK markets. WNS’s 2017 Denali acquisition enhances Capgemini’s strategic sourcing and procurement capabilities, while its North American and UK-centric clients expand Capgemini’s geographic footprint.

However, some investors express caution, as Capgemini’s shares fell 5% on July 7, reflecting concerns about balance sheet flexibility and integration risks. Analysts from Morgan Stanley and Everest Group highlight that while the deal could drive AI-led transformation, significant investments and leadership focus are needed to realize synergies. The transaction may also trigger broader consolidation in the tech industry.

Workforce and India Presence

Both companies have a strong presence in India, collectively employing over 200,000 people across 24 locations. WNS’s 44,000 India-based employees, out of its 65,000 global workforce, will integrate into Capgemini’s operations, increasing its offshore workforce from 58% to 63%. While no immediate workforce disruptions are planned, analysts suggest long-term automation may lead to efficiency-driven optimizations.

Financial and Strategic Outlook

WNS reported $1.27 billion in revenue for FY25 with an 18.7% operating margin, achieving 9% average constant-currency revenue growth over the past three years. The combined entity is projected to generate €23.3 billion in revenue with a 13.6% operating margin in 2024. Capgemini’s 2025 financial targets remain unchanged, aiming for -2% to +2% revenue growth at constant currency, a 13.3-13.5% operating margin, and €1.9 billion in organic free cash flow.

Conclusion

Capgemini’s $3.3 billion acquisition of WNS marks a strategic move to lead in AI-driven intelligent operations, blending WNS’s BPS expertise with Capgemini’s global scale and AI capabilities. While the deal promises cross-selling opportunities and market leadership, investors should monitor integration progress and synergy realization amidst potential industry consolidation. The acquisition reinforces India’s growing role in global tech services.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct thorough research or consult a financial advisor before making investment decisions.

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