WNS has acquired 100 per cent equity AGS, its business process offshoring company. Since 2004, WNS has provided BPO services to Aviva pursuant to build-operate-transfer (BOT) contracts from facilities in Pune, India and Colombo, Sri Lanka, a release issued by WNS said. With this acquisition, WNS will take over AGS' operations comprising more than 5,800 seats.
Under the agreement, which is for eight years and four months, WNS will be the long-term strategic BPO services provider to Aviva's UK, and Canadian businesses.
Other providers will be capped on numbers and duration on existing contracts. As part of the pact, WNS will also benefit from a recently signed AGS contract for 580 employees with Aviva's Irish subsidiary, Hibernian. WNS funded the transaction through a combination of cash and a bank loan facility of pproximately $200 million.
"Apart from a large BPO contract, this significantly accretive acquisition promotes our strategy of expanding market share in target industries, greatly extends our scale, and bolsters our service offerings," said Neeraj Bhargava, CEO, WNS Global Services.
WNS will provide a comprehensive spectrum of life and general insurance processing functions to Aviva, including policy administration and settlement along with finance and accounting, customer care and other support services.
"This contract allows Aviva to continue our working relationship with a provider that truly understands the insurance industry and has a tireless commitment to process excellence and customer care, making WNS our partner of choice," said Cathryn Riley, chief operating officer of Norwich Union Life, and chairman, Aviva Global Services, both business divisions of Aviva.
Alok Misra, CFO, WNS Global Services, added: "This acquisition adds immediate value to our shareholders as it is accretive on both net income margin and EPS. It gives us significant scale and an industry leadership position to pursue growth-oriented opportunities."
