WNS to acquire business process management firm Denali for about $40 million
WNS announced on Tuesday to acquire strategic procurement business process management (BPM) solutions firm Denali Sourcing Services (Denali) for about $40 million to boost its finance and accounting solutions.
“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,” WNS chief executive officer (CEO) Keshav Murugesh, said in a press release.
Denali Sourcing Services provides comprehensive Source-to-Contract (S2C) solutions, including Category Management, Strategic Sourcing, Contract and Supplier Management, and Spend Analytics.
Commenting on its company's acquisition by WNS, Denali Sourcing Services founder and CEO Alpar Kamber, said in a statement, “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," Kamber added.
Denali Sourcing Services currently manages over $30 billion in spend on behalf of over 25 clients via a multi-location global delivery network, WNS said in a statement. The company presently employs over 200 cost and procurement professionals globally, it added.
The acquisition of Denali Sourcing Services is subject to customary closing conditions, and is expected to close in January, 2017, cited WNS in a release.
Cash consideration for the transaction is $40.0 million plus adjustments for cash and working capital, it said.
WNS said that it intended to fund the acquistion 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.