WNS to Acquire Denali Sourcing Services
January 10 2017 - 7:30AM
Business Wire
Adds Strategic Sourcing and Category Management
Capability to WNS Solution Suite
WNS (Holdings) Limited (WNS) (NYSE: WNS), a leading provider of
global Business Process Management (BPM) services, today announced
that on January 10, 2017, the company entered into a definitive
agreement to acquire Denali Sourcing Services (Denali), a leading
provider of strategic procurement BPM solutions. Denali delivers
high-end global sourcing and procurement services to some of the
world’s leading brands in the High-Tech, Retail/CPG, Banking and
Financial Services, Utilities, and Healthcare verticals. Denali
provides comprehensive Source-to-Contract (S2C) solutions,
including Category Management, Strategic Sourcing, Contract and
Supplier Management, and Spend Analytics. Denali Sourcing Services
has built a proprietary smart technology system to perform spend
analytics, and a procurement value management and tracking platform
called SmarTrak. Additionally, Denali Sourcing Services has
developed Denali Academy, an industry-leading training platform
designed to enable strategic procurement capabilities for clients.
Focused solely on procurement, Denali has pioneered “sourcing as a
service” in a technology-agnostic capacity, and currently manages
over $30 billion in spend on behalf of over 25 clients via a
multi-location global delivery network. Over 90% of Denali’s
revenue is recurring in nature, and over 95% of revenue is derived
from clients in the United States.
“The acquisition of Denali Sourcing Services adds a strategic
procurement capability to our existing Finance and Accounting
solutions. 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. We are pleased
to welcome this talented team to WNS, and look forward to
leveraging their expertise to help drive increased value for all of
our key stakeholders.”
“Denali Sourcing Services is excited to join the WNS team, and
looks forward to bringing our combined market-leading procurement
solutions to the broader BPM marketplace,” said Alpar Kamber,
Founder and CEO, Denali Sourcing Services. “Having successfully
worked together over the past three years, we believe this
combination is a good strategic and cultural fit. We are confident
that WNS’ capabilities, market presence and customer base will
allow us to drive deeper client value, expand our reach, and create
new offerings.”
The acquisition of Denali Sourcing Services is subject to
customary closing conditions, and is expected to close in January,
2017. Cash consideration for the transaction is $40.0 million plus
adjustments for cash and working capital. WNS intends to fund the
consideration primarily with long-term debt. The acquisition is
expected to contribute approximately $3 million in revenue for WNS
in the fiscal year ending March 31, 2017, and to be accretive to
fiscal 2017 earnings. Denali currently employs over 200 cost and
procurement professionals globally.
About WNSWNS (Holdings)
Limited (NYSE: WNS), is a leading global business process
management company. WNS offers business value to 200+ global
clients by combining operational excellence with deep domain
expertise in key industry verticals including Travel, Insurance,
Banking and Financial Services, Manufacturing, Retail and Consumer
Packaged Goods, Shipping and Logistics, Healthcare and Utilities.
WNS delivers an entire spectrum of business process management
services such as finance and accounting, customer care, technology
solutions, research and analytics and industry specific back office
and front office processes. As of September 30, 2016, WNS had
31,719 professionals across 42 delivery centers worldwide including
China, Costa Rica, India, Philippines, Poland, Romania, South
Africa, Sri Lanka, United Kingdom and the United States. For more
information, visit www.wns.com.
Safe Harbor StatementThis
release contains forward-looking statements, as defined in the safe
harbor provisions of the US Private Securities Litigation Reform
Act of 1995. These forward-looking statements are based on our
current expectations and assumptions about Denali Sourcing Services
(Denali) and our industry. Generally, these forward-looking
statements may be identified by the use of terminology such as
“anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,”
“seek,” “should” and similar expressions. These statements include,
among other things, the discussions of the completion of our
acquisition of Denali, the timing of the completion of our
acquisition of Denali, and the expected benefits of our acquisition
of Denali, including Denali’s expected revenue contribution to WNS
and accretive benefit to our earnings, our growth opportunities,
industry environment, and expectations concerning our future
financial performance and growth potential. Forward-looking
statements inherently involve risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied by such statements. Such risks and uncertainties include
but are not limited to worldwide economic and business conditions;
political or economic instability in the jurisdictions where we
have operations; our dependence on a limited number of clients in a
limited number of industries; regulatory, legislative and judicial
developments; increasing competition in the BPM industry;
technological innovation; telecommunications or technology
disruptions; our liability arising from fraud or unauthorized
disclosure of sensitive or confidential client and customer data;
our ability to attract and retain clients; negative public reaction
in the US or the UK to offshore outsourcing; our ability to expand
our business or effectively manage growth; our ability to hire and
retain enough sufficiently trained employees to support our
operations; the effects of our different pricing strategies or
those of our competitors; our ability to successfully consummate,
integrate and achieve accretive benefits from our strategic
acquisitions, and to successfully grow our revenue and expand our
service offerings and market share; and future regulatory actions
and conditions in our operating areas. These and other factors are
more fully discussed in our most recent annual report on Form 20-F
filed on May12, 2016 with the US Securities and Exchange Commission
(SEC) which are available at www.sec.gov. We caution you not to
place undue reliance on any forward-looking statements. Except as
required by law, we do not undertake to update any forward-looking
statements to reflect future events or circumstances.
References to “$” refer to the United States dollars, the legal
currency of the United States.
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version on businesswire.com: http://www.businesswire.com/news/home/20170110005682/en/
WNS (Holdings) LimitedDavid MackeyCorporate SVP–Finance &
Head of Investor Relations+1 (201)
942-6261david.mackey@wns.comorArchana RaghuramHead – Corporate
Communications+91 (22) 4095 2397archana.raghuram@wns.com;
pr@wns.com
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