NYSE-listed Business Process Management (BPM) company WNS has signed a definitive agreement to acquire US-based Denali Sourcing Services for $40 million in cash transactions. The deal, which is expected to close this month, also includes adjustments for cash and working capital.
Denali, a provider of strategic procurement BPM solutions, currently employs more than 200 cost and procurement professionals globally. WNS intends to fund the acquisition primarily with long-term debt, it said in a statement today.
“The acquisition of Denali adds a strategic procurement capability to our existing Finance and Accounting solutions (F&A). Denali is a unique asset which we believe helps position WNS as an industry leader in F&A, and enhances our industry specific solutions,” said Keshav Murugesh, WNS’ Chief Executive Officer.
“In combination with our existing Procure-to-Pay (P2P) capabilities, the acquisition of Denali will enable us to offer complete end-to-end Source-to-Pay (S2P) solutions,” he added.
The acquisition is expected to contribute about $3 million in revenue for WNS in the fiscal ending March 31, 2017, and to be accretive to fiscal 2017 earnings.
Denali provides global sourcing and procurement services to some of the world’s leading brands in the high-tech, retail, banking and financial services, utilities and healthcare verticals
Denali manages over $30 billion in spend on behalf of over 25 clients via a multi-location global delivery network. Over 90 per cent of its revenue is recurring in nature, and about 95 per cent is derived from clients in the US.