In one of the biggest IT-BPO deal in a decade, which also highlights the growing influence of AI in business operations, French technology giant Capgemini has agreed to acquire Indian-origin business process management firm WNS for $3.3 billion (approximately Rs 28,280 crore) in an all-cash transaction.
The acquisition, which is Capgemini’s largest in nearly a decade, is expected to significantly bolster its presence in India and deepen its capabilities in AI-powered intelligent operations.
Founded in Mumbai in 1996, WNS employs over 64,000 people globally, with about 20,000 in India across 12 cities including Mumbai, Chennai, Vizag and Indore. The deal is likely to have a substantial impact on Capgemini’s already expansive Indian operations, where it currently employs around 150,000 professionals, nearly half its global headcount. The move will further strengthen Capgemini’s footprint in key verticals such as BFSI, travel, manufacturing, and retail, and offer a platform for developing next-gen services-as-software offerings aimed at a projected $1.5 trillion market by 2035.
Capgemini is offering $76.50 per WNS share, representing a 17% premium over WNS’s last closing price on July 3, and 28% over its 90-day average. Despite this premium, Capgemini’s shares slid over 5% on Monday, reflecting investor concerns about the longer-term implications of AI on the BPO sector. Analysts at Morgan Stanley pointed out that the automation potential of generative AI could shrink traditional BPO revenues, increase competition, and pose risks to the returns expected from the deal.
However, Capgemini remains optimistic. The company said the acquisition would be accretive to earnings per share by 4% in 2026 and 7% in 2027, post-synergies. It anticipates between €100 million and €140 million in revenue synergies, and cost savings of €50 million to €70 million annually by 2027. The transaction, approved by the boards of both companies, is expected to close by year-end, pending shareholder and regulatory approvals.
“Capgemini’s acquisition of WNS will provide the group with the scale and vertical sector expertise to capture that rapidly emerging strategic opportunity created by the paradigm shift from traditional business process services to Agentic AI-powered intelligent operations,” Capgemini CEO Aiman Ezzat, said.
WNS, currently headquartered across New York, London and Mumbai, serves over 700 clients worldwide and recently expanded its capabilities through the $63.4 million acquisition of AI firm Kipi.ai. WNS CEO Keshav R Murugesh said the combination will usher in the next wave of transformation. “Organisations that have already digitised are now seeking to reimagine their operating models by embedding AI at the core, shifting from automation to autonomy,” he said.
Analysts see the move as a harbinger of further consolidation in the IT and BPO sectors, driven by a pressing need to integrate AI capabilities. “Specialist BPO companies have struggled to build out their technology capabilities organically. This deal could trigger a wave of similar acquisitions,” said Ramkumar Ramamoorthy, partner at Catalincs.
While some said that WNS’s scale, its addition will boost Capgemini’s revenue base by only 5%, won’t be transformational, others see long-term strategic value.
“Both firms have good synergies, Capgemini will benefit from the acquisition with additional market share in critical markets like US where WNS has established presence,” Namratha Dharshan, chief business leader, ISG India Research said. She also said that this might trigger consolidation wave where providers in general facing slower deal conversions will look for inorganic growth to scale.
