Indian outsourcing firm WNS acquires BGL’s South African unit

India-based business process outsourcing (BPO) firm WNS (Holdings) Ltd (NYSE:WNS) said on Thursday it had taken over South African peer Fusion Outsourcing Services (Pty) Ltd from a unit of British insurance broker BGL Group Ltd.

By establishing presence in South Africa, WNS addresses its objectives of extending its global delivery footprint and setting foot into emerging growth markets, its chief executive officer Keshav Murugesh commented.

As part of the transaction, WNS is paying GBP10m (USD15.7m/EUR12.4m), plus adjustments for cash and working capital, to BFSL Limited. It will provide the agreed consideration in tranches, with half of the sum on closing and the balance in several installments by 31 May 2013. The transaction will be funded from WNS’ existing cash resources.

WNS projects that this acquisition will add between USD9m (EUR7.1m) and USD10m of incremental revenue in fiscal 2013, based on Fusion’s existing book of business. It also expects the transaction to be neutral to its adjusted EPS in the same year and accretive in fiscal 2014.

Fusion, which has activities in Cape Town and Johannesburg, offers contact centre, customer care and business continuity services to local and international clients. The firm presently has a workforce of around 1,500.