WNS announces multi-year one billion dollars BPO Contract with Aviva

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New York, July 11 (ANI/Business Wire India): WNS (Holdings) Limited, a leading provider of global business process outsourcing (BPO) services, announced it has entered into a transaction with Aviva, the world's fifth largest insurance group with 95 billion dollars revenue in 2007.

This transaction is comprised of a Share Sale and Purchase Agreement, backed by a Master Services Agreement, to acquire Aviva's offshore operations, which run a number of its critical business processes.

Pursuant to the Share Sale and Purchase Agreement with Aviva, WNS today acquired all of the shares of Aviva Global Services ("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.

With this acquisition, WNS will take over AGS' operations comprising over 5800 seats as follows:

-- Assume control of AGS's captive operations in Bangalore, India; and Colombo, Sri Lanka. The WNS-managed Colombo facility was transferred to AGS in July 2007

-- Transfer AGS's Pune and Chennai operations, which are currently run by other providers, within 30 days. AGS has issued transfer notices to these third party providers.

The WNS-managed facility in Pune will remain with WNS.

Under the Master Services Agreement, which is of eight years and four months' duration, 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 as per existing contracts.

As part of the MSA, WNS also benefits from a recently signed AGS contract for approximately 580 employees with Aviva's Irish subsidiary, Hibernian.

Based on the anticipated service requirements of these businesses, as provided by Aviva, WNS estimates that the Master Services Agreement could generate approximately billion in revenues over the life of the contract.

The total purchase consideration paid to Aviva for the transaction is approximately GBP 115 million (8 million), subject to adjustments for cash and debt. WNS funded the transaction through a combination of cash and a bank loan facility of approximately 0 million.

"With this acquisition, WNS solidifies its position as a premier offshore BPO provider," said Neeraj Bhargava, CEO, WNS Global Services.

"Aside 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 -- not just in the insurance industry, but across all our businesses. Aviva will be an active partner during the transition period, and we are confident that our integration plans will result in a smooth transition. We also see significant potential to grow our business with Aviva, not only outside the UK, Canada and Ireland, which AGS serves today, but also in new high growth areas such as analytics," added Neeraj.

Under the terms of the contract, 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.

"During the selection process, we evaluated some of the best BPO providers in the global marketplace and selected WNS based on their proven operational performance and alignment of both culture and values. 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.

Continuing, Riley added: "We are proud of the significant delivery capability that we have built offshore and we remain firmly committed to offshoring. By transferring our captive and third-party operations to WNS, Aviva benefits from WNS' ability to bring us new perspectives and continue our focus on customer service excellence. Having worked with WNS since 2004, we expect a smooth transition period and look forward to a successful, long-term partnership."

With the acquisition and associated contract, WNS' revenues and resources will increase significantly, positioning the company to compete even more aggressively in the global outsourcing marketplace.

WNS' estimate of expected revenues over the term of the contract is based on initial billable headcount of approximately 4,200 and growth expectations such as the Hibernian ramp-up over the course of the contract, and not the minimum headcount guarantee of 3,000 billable employees under the contract.

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