WNS Holdings, a technology outsourcing services firm with a market value of $2.8 billion, is exploring a sale after receiving acquisition interest from potential buyers, including Capgemini. The company, with roots in India, is collaborating with JPMorgan Chase to assess discussions with interested parties, which also include rival information technology services firms.
If negotiations progress positively, a deal could be finalized in the coming weeks, though the talks remain fluid, and WNS may opt not to move forward with a transaction. Following the announcement, WNS shares surged over 14%, reaching a 52-week high before retracting some gains.
Led by IT services industry veteran Keshav Murugesh, WNS was founded in 1996 by British Airways in Mumbai as a subsidiary to handle the airline's back-office technology operations. It became an independent entity in 2002 when private equity firm Warburg Pincus acquired a majority stake.
WNS offers services including business process outsourcing and data analytics, serving clients such as Coca-Cola, T-Mobile, and United Airlines. The company competes mainly against larger software exporters like Cognizant and Genpact, which employ thousands of engineers in cost-effective locations like India for software development and application maintenance. Recently, WNS acquired Houston-based Kipi.ai, a vendor specializing in analytics and artificial intelligence services, to capitalize on the growing demand for AI services.
For the quarter ending December 31, WNS reported revenue of $333 million, an increase from $326.2 million the previous year, while profit rose to $48.6 million from $41.5 million. The company’s shares have gained nearly 30% since its latest quarterly results met market expectations, following six consecutive quarters of disappointing performance.