WNS buys UK's Call 24/7

WNS (Holdings), the NYSE-listed BPO company, has acquired UK-based Call 24/7, an auto insurance claims processing services provider, for Rs 77 crore.

The amount for the acquisition is pegged at £8 million (Rs 64 crore) and will be paid in cash at the completion of the deal.

A contingent earn-out of £1.6 million (around Rs 12 crore) to be determined on certain performance parameters in the financial year ending March 31, 2009, will also be paid in cash during FY09.

WNS will integrate Call 24/7 into WNS Assistance, a division of WNS Global Services UK and subsidiary of WNS. The deal will enable the company to extend its leadership position in accident claims management in the UK.

"Call 24/7 is a highly synergistic acquisition and will strengthen our position as a leading auto claims administrator in the UK. 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.

WNS has acquired all the shares of Chang, Cheshire-based holding company in which Call 24/7 is the key operating entity. WNS has so far made five acquisitions and Call 24/7 would be the sixth.

In 2007, it made three acquisitions. Of these, Marketics Technologies, the Bangalore-based knowledge processing firm, was one of the largest deals worth $65 million.