NYSE-listed WNS (Holdings), a provider of business process outsourcing (BPO) services, has acquired UK-based Call 24/7-- an auto insurance claims processing services provider.
The total consideration for the acquisition includes cash of approximately £8 million (approximately Rs 64 crore) on completion of the deal, and a contingent earn-out of up to approximately £1.6 million (approximately Rs 12.8 crore) to be determined based on certain performance metrics for the fiscal year ending March 31, 2009.
WNS has acquired all shares of Chang, the Stockport, Cheshire-based holding company in which Call 24/7 is the key operating entity pursuant to a definitive agreement with the shareholders of Chang. WNS funded the cash payment made at the deal’s completion from existing cash and cash equivalents and expects to fund the earn-out payment also from existing cash and cash equivalents.
WNS will integrate Call 24/7 into WNS Assistance, a division of WNS Global Services UK, a subsidiary of WNS. The deal will enable the company to extend its market leadership position in accident claims management in the UK. WNS Assistance and Call 24/7 each leverage cost-efficient claims processing, technology and engineering and collision-repair expertise to deliver quality service throughout the accident-management process.
"Call 24/7 is a highly synergistic acquisition, and an addition to a proven business model that will strengthen our position as a leading auto claims administrator in the UK market. We are excited by the growth prospects of this deal, which we expect to be earnings-per-share accretive within the first year," said Neeraj Bhargava, CEO, WNS Global Services.
"The joint experience of Call 24/7 and WNS Assistance will create a compelling value proposition for UK insurance firms," said Ian E. Griswould, Chairman and Principal, Call 24/7.
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