WNS buys Marketics for $65 million

WNS Holdings, a $300 million BPO services provider, has acquired Bangalore-based knowledge processing firm Marketics Technologies for $65 million (about Rs 290 crore) in cash.

WNS said it has signed a non-binding letter of intent to acquire the privately-owned company in offshore analytics services.

"The cultural fit with WNS is excellent and their financial strength, customer access, infrastructure and recruiting capabilities will be a tremendous boost for our business," said Sreenivasan Ramakrishnan, co-founder and chief executive officer of Marketics Technologies. Marketics, whose top line is close to $4 million, is a four-year old company employing about 200 people in Bangalore and Coimbatore.

WNS is expected to pay $30 million at the time of closing the deal and an earn-out of up to $35 million over 12 months. WNS expects to finance the transaction primarily through existing cash and cash equivalents.

The acquisition is subject to due diligence and execution of definitive documentation (with customary closing conditions, such as regulatory approvals) and is expected to be closed within 90 days.

The acquisition is expected to enhance WNS' Knowledge Services business, which provides market research, business and financial research and analytics services. Knowledge Services works with clients across the company's industry specialisations in travel, banking, financial services and insurance and allows WNS to expand in emerging industries like consumer goods, media and entertainment, retail and professional services.

"Marketics, in a short time, has built a world-class company focused on offshore analytics. This acquisition, when completed, will enhance our Knowledge Services leadership, help us penetrate new consumer-centric industries, and move us further up the value chain in our service offering," Neeraj Bhargava, WNS group chief executive officer, said.