WNS terminates Capgemini deal, Capgemini to pay $169 mln termination fee

WNS has announced that Capgemini will pay a $169 million termination fee to the company upon deal termination. The deal was terminated by WNS, and the fee is part of the terms of the agreement. Capgemini is a global IT services company with four sectors: system design, development and integration; outsourcing services; technology and engineering services; and consulting services.

Capgemini SE (EPA:CAPP), a global IT services company, has agreed to pay a $169 million termination fee to WNS Holdings Ltd (NYSE:WNS) following the termination of their acquisition deal. The termination fee is part of the terms of the agreement and was announced by WNS on July 2, 2025.

The deal, initially announced in May 2025, was aimed at integrating Capgemini's extensive IT services with WNS's outsourcing capabilities, with a focus on developing and adopting artificial intelligence in the business process services (BPO) sector. Capgemini had agreed to pay $76.50 per share for WNS, representing a 17% premium to the stock's close on Friday, May 16, 2025. The total acquisition cost was estimated at $3.3 billion [1].

However, the deal faced scrutiny from analysts who raised concerns over the impact of generative AI (Gen AI) on the BPO market. Analysts from Morgan Stanley noted that the shift towards automation could reduce BPO revenues and expose incumbent vendors to competition from new entrants. They also expressed skepticism about whether WNS was the right vehicle for Capgemini to disrupt the BPO market with Gen AI [2].

Following the termination, Capgemini's shares fell more than 5%, reaching their lowest price since late April. The termination of the deal also raises questions about the use of Capgemini's balance sheet firepower, which will now be available for other strategic initiatives.

References:

[1] https://www.investing.com/news/stock-market-news/capgemini-to-acquire-outsourcing-firm-wns-for-33-bln-4123897
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3T40EI:0-capgemini-falls-as-wns-deal-raises-questions-over-ai-s-business-impact/