Four-Year-Old MR Offshoring Firm Goes for $65m

WNS, a provider of offshore business process outsourcing (BPO), has signed a non-binding letter of intent to acquire Bangalore-based offshore analytics firm Marketics Technologies, for a total enterprise value of approximately $65 million in cash.

Marketics was formed only in 2003. The deal includes a $30m payment on closing and an earn-out of up to $35m over a 12-month period, and should be financed primarily through existing cash and cash equivalents. Marketics has around 200 employees, with 30 in Coimbatore, India and the remainder in Bangalore.

The buy will complement WNS (Holdings) Limited's existing Knowledge Services business, which provides market research, business & financial research and analytics services. Clients are typically companies located in Europe and North America and at present most are in travel, banking, financial services and insurance: the deal should help the division to expand in consumer goods, media & entertainment, retail and professional services.

According to WNS Group CEO Neeraj Bhargava: 'Marketics, in a very 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.' Marketics co-founder and Chief Exec Sreenivasan Ramakrishnan says his firm is 'ready for bigger things', adding: '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.'

Subject to the usual procedures and approvals, the deal should be completed within the next 90 days.

Marketics Technologies, founded only in 2003, is online at www.marketics.com . WNS is on the web at www.wnsgs.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.