WNS acquires US-based Denali Sourcing for $40 million

11 Jan 2017


WNS, an NYSE-listed business process management company, has acquired Denali Sourcing Services for a cash consideration of $40 million, a move that will add about $3 million to its annual revenues.

Denali, a US-based company, currently employs over 200 cost and procurement professionals globally.

The acquisition is subject to customary closing conditions and is expected to close in January. Apart from the cash consideration, the deal also includes adjustments for cash and working capital, WNS stated in a release.

''The acquisition of Denali adds a strategic procurement capability to our existing finance and accounting (F&A) 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 capabilities, the acquisition of Denali will enable us to offer complete end-to-end source-to-pay solutions,'' he said.

WNS intends to fund the acquisition primarily with long-term debt. The acquisition is expected to contribute about $3 million in revenue for WNS in the fiscal year ending 31 March 2017, and to be accretive to fiscal 2017 earnings.

Denali delivers high-end global sourcing and procurement services to some of the world's leading brands in the high-tech, retail, banking and financial services, utilities and healthcare verticals. It provides comprehensive source-to-contract solutions, including category management, strategic sourcing, contract and supplier management, and spend analytics.

Denali has built a proprietary technology system to perform spend analytics and a procurement value management and tracking platform called SmarTrak. Additionally, it also developed Denali Academy, a training platform to enable strategic procurement capabilities for clients.

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 per cent of Denali's revenue is recurring in nature, and over 95 per cent of revenue is derived from clients in the United States.

As of 30 September 2016, WNS had 31,719 professionals across 42 delivery centres, including China, Costa Rica, India, the Philippines, Poland, Romania, South Africa, Sri Lanka, United Kingdom and the United States.

''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,'' said Alpar Kamber, founder and CEO, Denali Sourcing Services.

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