July 7th, The French IT services group Capgemini (CAPP.PA) announced on Monday that it has agreed to pay $3.3 billion in cash to acquire the technology outsourcing company WNS (WNS.N) in order to increase the variety of AI solutions it provides to businesses, so basically, Capgemini is acquiring WNS.
Through the agreement, Capgemini will be able to develop a consulting business service that will assist businesses in employ artificial intelligence-specifically, generative and agentic AI to improve their operations and cost efficiency. The company anticipates that this service will draw large investments.
What Took Place Capgemini Acquisition WNS
Following months of conjecture, Capgemini declared that it has reached a deal to buy WNS for US$3.3 billion. Capgemini would pay US$76.50 per share under the definitive sale agreement, which is 17% more than WNS’ closing share price on Friday, July 4, 2025.
The acquisition is valued at 16.3 times EBITDA and 2.5 times revenue, which is higher than the median of 11.6 times EV/EBITDA and 1.5 times EV/Sales for some of its pure-play BPS competitors.
Strong Complementarity Between Capgemini and WNS
Complementary strengths from the Capgemini acquisition of WNS
- Offerings:
There will be two levels of complementarity in the offerings. By greatly expanding its BPS footprint, the acquisition of WNS will diversify Capgemini’s offering, which is mostly focused on consulting, engineering, and IT services, at the group level. The acquisition will establish the merged company as a broad-based BPS player in the truest meaning of the word.
WNS fills important gaps in Capgemini’s current offering by contributing extensive industry-specific BPS knowledge, especially in P&C insurance, travel and leisure, and healthcare and life sciences. The purchase can produce a well-rounded value proposition that greatly increases cross-selling possibilities by building on Capgemini’s solid enterprise BPS heritage.
- Industry:
Capgemini will be able to rebalance its industry mix outside its primary concentration on manufacturing and financial services by integrating WNS, which will add depth to its underserved verticals, including insurance, travel, and healthcare and life sciences.
- Geography:
Capgemini’s strategic growth goal in these priority geographies is advanced by the acquisition, which gives it instant scale and improved market access in North America and the UK.
The Acquisition’s Complementary Business Process Capabilities, as Highlighted in Everest Group’s PEAK Matrix Assessments
Critical mass for BPS
Capgemini and WNS were ranked 33rd and 34th, respectively, in our most recent BPS Top 50™ 2025 survey. This evaluation would move the merged entity up to rank 19.
Although Capgemini and WNS’s combined BPS business size is still less than that of the competition, it is noticeably closer to the peer average, which is a major improvement over Capgemini’s standalone position.
Leading IT-BPS providers’ BPS revenue as a percentage of their total top line is shown in Exhibit 3.
BPS Revenue as a Percentage of the Overall Top Line of Leading IT-BPS Providers
Key Risks and Precautions
Beyond the difficulties of integrating a large company, this acquisition presents additional difficulties, such as:
- Timing:
Given the unstable macroenvironment, which is characterized by tariffs, the widespread use of AI, and the economic slowdown, providers must be quick and flexible. In light of this, poorly managed acquisition and WNS integration timing may cause distraction
2. Organizational and Cultural Alignment:
Capgemini Global Business Services is headquartered in France, with strategic leadership based in Europe. Its main delivery centers are situated in Eastern Europe and India. There may be cultural difficulties when integrating this European-led strategy with WNS’ operations in India, especially for mid-to-senior management.
Notably, Capgemini encountered comparable difficulties in 2015 when it announced the purchase of iGate, which was followed by the CEO of iGate leaving the company soon after and evident client concerns. Given its recent difficulties on both fronts, Capgemini ought to go back and review the acquisition in order to handle the dynamics surrounding the WNS leadership and client sentiments.
3. Justification for Value Premium:
Investor expectations are reflected in the premium paid for the transaction. To support its choice, Capgemini will have to begin demonstrating improvements in both the top line and margins.
Capgemini to Acquire WNS to Create a Global Leader in Agentic AI-Powered Intelligent Operations
- Establishment of an Intelligent Operations leader to attract corporate investment in Agentic AI to revolutionize their entire business process
- Purchasing a major player in digital business process services (BPS) will allow Capgemini to combine size and skills to take advantage of the strategic opportunity presented by agentic AI.
- The transaction will boost the company’s operating margin and revenue growth right away.
- Capgemini’s normalized EPS is expected to increase by 4% prior to synergies in 2026 and 7% after them in 2027.
- A definitive acquisition agreement has been signed, allowing Capgemini to purchase WNS for 76.50 USD per share in cash.
- The two firms’ boards of directors unanimously authorized the deal, which is anticipated to finalize by the end of the year.
Implications
For businesses
- Possible end-to-end service access:
The acquisition resolves the recent ambiguity around the company’s future for current WNS clients. Additionally, it presents the chance for more extensive offerings of tech and consulting services. More industry-specific BPS services will be available to current Capgemini clients. In other words, Capgemini’s current customers on both sides can anticipate that the merged company will position its end-to-end services
- Keep an eye out for integration execution gaps:
The synergies that are actually realized and those that are described on paper frequently diverge. Integrations take time to happen, even when they are aligned. Businesses should continue to be aware of the difficulties mentioned in the preceding section.
For the industry
- Indication of a growing process-first mentality in the age of AI:
In the era of artificial intelligence, some people are eager to write BPS’s obituaries, but the statistics show otherwise. Since the advent of generative AI, BPS has grown faster than IT services, and this trend is predicted to continue until 2025 (see Exhibit 4). More crucially, companies must pay off their Process-Skills-Tech-Data (PSTD) debt in order to capture economic value from AI.
The absence of domain and process expertise required to adequately bridge this gap is a significant obstacle for service providers. Capgemini’s intention to close that process knowledge gap is reflected in its choice to pay more for this acquisition. Now, the issue is: will other industry players follow suit?
- Don’t ignore non-IT legacy BPS providers, but anticipate additional acquisitions.
Over the next three to five years, the technology services sector is expected to undergo major change, which could lead to a surge in mergers and acquisitions. This development should not be confused with the demise of BPS providers that are not IT legacy suppliers, though.
Actually, according to our data, these companies are mostly responsible for the BPS market’s present rise.
Conclusion
The Capgemini acquisition of WNS will continue to be closely examined in a number of areas, such as strategic fit, integration efficacy, and valuation rationale, much like any significant acquisition. We view this acquisition as a crucial step for Capgemini, even though concerns about its timing, cultural fit, and premium expectations still exist. With more extensive, end-to-end offerings, it boosts Capgemini’s position in the market, fills important portfolio gaps, and improves Capgemini’s skills.
More significantly, it provides a response to a question that is becoming increasingly urgent: What function does BPS serve in a world driven by AI? To fully realize AI’s promise, the solution is to combine BPS’s basic strengths, deep process intelligence, and domain expertise with technology, skill, and data. This necessitates a process-first strategy rather than a tech-first one, which businesses cannot.
FAQ
Is Capgemini acquiring WNS?
No, Capgemini is not currently acquiring WNS. While there were advanced talks about a potential acquisition, Bloomberg and other sources reported that Capgemini has paused the negotiations due to global market volatility.
Is EY acquired by Capgemini?
No, Capgemini did not acquire EY (Ernst & Young). In 2000, Cap Gemini acquired Ernst & Young’s consulting arm, which was a significant merger resulting in the formation of Cap Gemini Ernst & Young.
What is the highest salary in WNS?
The highest salary at WNS Global Services is for the role of Senior Director Capability Source II Pay, estimated at ₹71,74,305 per year, according to Glassdoor.
Is Capgemini a big 4?
This acquisition will give Capgemini a new positioning in the global tech market against the Big 4, comprising Deloitte, PwC, EY, and KPMG.