WNS Closes Acquisition of Marketics Technologies
May 14 2007 - 5:45PM
Business Wire
WNS (Holdings) Limited (NYSE: WNS), a leading provider of offshore
business process outsourcing (BPO) services, announced that it
closed its acquisition of Marketics Technologies (India) Private
Limited, a privately-owned leader in offshore analytics services on
May 9, 2007. The total consideration for the acquisition consists
of a $30 million payment at closing and a contingent earn-out of up
to a maximum of $35 million based on the results of operations of
Marketics for the fiscal year ending March 31, 2008. The contingent
earn-out consideration would be computed as 15 times fiscal 2008
net income excluding share-based compensation expense and other
items, as defined in the Sale and Purchase Agreement for the
acquisition, less the $30 million payment at closing. WNS funded
the first payment of $30 million from existing cash and cash
equivalents and intends to fund the contingent earn-out
consideration also from existing cash and cash equivalents. The
offshore analytics market is emerging rapidly as companies look to
find new ways to grow revenue and margins. Over the last 3 years,
Marketics has established itself as a leader and innovator in this
segment by developing a wide range of technology-enabled analytic
services, primarily targeting the sales and marketing organizations
of consumer-centric companies. Marketics� value proposition is
focused on enabling business decision making through the use of
complex analytics. The company provides complex services such as
predictive modeling to understand consumer behavior and sales data
analytics to support inventory allocation. Such services tend to
command high revenue per employee. �Marketics has approximately
doubled its revenue in each of the last three years and is
profitable,� said Neeraj Bhargava, WNS Group Chief Executive
Officer. �We expect Marketics to be accretive to net income
excluding amortization of intangible assets and share-based
compensation expense. This acquisition fits in with our strategy of
acquiring companies that bring new capabilities to WNS.� Through
the acquisition, WNS also gains nine clients many of which are
Fortune 200 companies in customer-centric industries such as
retail, consumer packaged goods, beverages and consumer electronics
and creates a new platform for WNS to expand in these industries.
�We are excited to be part of WNS as we believe that the company
will provide us with the appropriate platform for growth and give
us access to many more new clients,� said Sreenivasan Ramakrishnan,
Marketics� Co-Founder and Chief Executive Officer. �This is a
critical step towards achieving our mission of building a
world-class analytics business.� About WNS WNS is a leading
provider of offshore business process outsourcing, or BPO,
services. We provide comprehensive data, voice and analytical
services that are underpinned by our expertise in our target
industry sectors. We transfer the execution of the business
processes of our clients, which are typically companies located in
Europe and North America, to our delivery centers located primarily
in India. We provide high-quality execution of client processes,
monitor these processes against multiple performance metrics, and
seek to improve them on an ongoing basis. WNS ADSs are listed on
the New York Stock Exchange. For more information, please visit our
website at www.wnsgs.com. Safe Harbor Statement under the
provisions of the United States Private Securities Litigation
Reform Act of 1995 This release contains �forward-looking
statements� that are based on our current expectations,
assumptions, estimates and projections about our company and our
industry. The forward-looking statements are subject to various
risks and uncertainties. Those statements include estimates of the
benefits of the proposed acquisition and future plans of the
company. We caution you that reliance on any forward-looking
statement involves risks and uncertainties, and that although we
believe that the assumptions on which our forward-looking
statements are based are reasonable, any of those assumptions could
prove to be inaccurate, and, as a result, the forward-looking
statements based on those assumptions could be materially
incorrect. These factors include but are not limited to:
technological innovation; telecommunications or technology
disruptions; future regulatory actions and conditions in our
operating areas; our dependence on a limited number of clients in a
limited number of industries; our ability to attract and retain
clients; our ability to expand our business or effectively manage
growth; our ability to hire and retain enough sufficiently trained
employees to support our operations; negative public reaction in
the U.S. or the U.K. to offshore outsourcing; regulatory,
legislative and judicial developments; increasing competition in
the business process outsourcing industry; political or economic
instability in India, Sri Lanka and Jersey; worldwide economic and
business conditions; our ability to successfully consummate
strategic acquisitions; and other risks described from time to time
in our SEC filings, including our registration statement on Form
F-1 (No. 333-135590) filed on July 3, 2006, as amended.
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