Publish Date : 18-Jan-2017
WNS (Holdings) Limited (WNS), a leading provider of global Business Process Management (BPM) services, 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 worlds 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 Denalis 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.
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