Capgemini stock plummets after WNS acquisition
Capgemini just dropped $3.3 billion in cash to acquire WNS, a business process outsourcing firm, aiming to build a global powerhouse in AI-driven operations.
But investors got nervous—shares slipped over 5%—as many worry that generative AI could disrupt the traditional BPO industry and ramp up competition.
Deal comes with risks, especially with AI's rise
This move is big for anyone watching how tech is changing jobs and business services.
Analysts warn that AI might squeeze profits in the labor-heavy BPO sector, making things riskier for companies like Capgemini.
The deal offers WNS shareholders a solid 17% premium, but it also means short-term financial strain for Capgemini.
Capgemini sees immediate revenue boost from WNS acquisition
Despite the rocky start on the stock market, Capgemini expects this acquisition to boost its revenue and margins soon—projecting earnings per share will rise by 4% in 2026 and 7% in 2027.
With WNS's client list (think Coca-Cola and United Airlines) across eight industries, Capgemini is set to grow its US presence and expand its AI-powered services.