Capgemini to acquire WNS for $3.3 billion to expand AI tools, facing concerns about disruption.

France’s Capgemini is set to acquire WNS for $3.3 billion in cash, expanding its AI tools. The deal includes generative AI and agentic AI, attracting significant investments. The purchase price of $76.50 per WNS share is a 17% premium, excluding WNS’s financial debt. WNS serves clients like Coca-Cola and T-Mobile.

Capgemini’s CEO sees WNS as providing growth and exposure to the U.S. market. The acquisition will create cross-selling opportunities, mainly in the U.S. and Britain. The deal is expected to close by the end of 2025, boosting revenue and operating margin for Capgemini. However, Capgemini’s shares fell around 5% post-announcement.

Some investors worry about Gen AI disrupting the BPO market and impacting Capgemini’s revenues. The deal limits Capgemini’s balance sheet flexibility, with analysts questioning its financial impact. Evidence will be needed to convince the market that WNS is the right vehicle for this disruption. The deal aims to leverage AI in business processes for growth.

Read more at Yahoo Finance: Capgemini to buy outsourcing firm WNS for $3.3 billion in AI push