WNS Acquires Fusion Outsourcing in South Africa

BANGALORE: New York Stock Exchange listed, business process outsourcing firm WNS has acquired South African BPO Fusion Outsourcing Services for about £10 million. With operations in Cape Town and Johannesburg, Fusion currently employs approximately 1,500 people.

The transaction is expected to be funded from cash on hand, with approximately half of the consideration paid at completion and the remainder payable in tranches on or before May 31, 2013. The acquisition of the shares of Fusion from BFSL Limited, part of UK-based BGL Group of companies, is effective June 21, 2012.

"Expanding our global delivery footprint and entering emerging growth markets are key pillars of our investment strategy,"" WNS's CEO, Keshav Murugesh, stated. ""WNS currently has several existing and prospective clients interested in having services delivered from South Africa to take advantage of the English language capabilities.""

Based on Fusion's existing book of business, the acquisition is expected to contribute incremental revenue of $9 million - $10 million for WNS in fiscal 2013. WNS expects the transaction to be neutral to adjusted earnings[1] per share in fiscal 2013, and accretive in fiscal 2014.

WNS recently collaborated with Fusion to service one of WNS's largest UK-based clients with premium voice services.

In the longer term, South Africa will be an attractive destination for delivering work related finance, accounting and insurance, WNS said.