Indian BPO provider WNS Holdings has agreed to acquire US-based procure-to-pay services provider Denali Sourcing Services (Denali) for $40 million.
One of the major procurement solution vendors in the United States, Denali makes about $18 million in annual revenue and also runs delivery centers in India and Turkey.
According to India’s newswire Press Trust of India (PTI), half of the company’s employees are based in India, and the rest in the U.S. and Turkey.
Denali will retain its advisory, consultancy, and staffing services, but nearly 200 of its employees will move to WNS once the deal is closed.
Denali comes with about 25 clients. More than that, its procurement platforms, including a tracking platform called SmarTrak, are likely to reinforce WNS’ F&A service offering to a great extent.
Over 90% of Denali’s revenue is recurring in nature, and its U.S. clients account for more than 95% of its income. It also runs Denali Academy, a training platform designed to enable strategic procurement capabilities for enterprises.
“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, CEO of WNS, 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.”
Considering a statement by Alpar Kamber, founder and CEO of Denali, both companies have worked together on numerous projects in the past three years.
“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,” Kamber added.
Listed in the New York Stock Exchange, WNS says the deal will be closed in January itself and that Benali would increase its forth quarter revenue by more than $3 million.