WNS Holdings has acquired Call 24/7, an auto insurance claims processing services provider in the U.K in an all cash deal.
Under the terms of the deal, total consideration for the acquisition consists of approximately $16.0 million paid in cash at the deal’s completion and a contingent earn-out of up to approximately $3.2 million to be determined based on certain performance metrics for the fiscal year ending March 31, 2009, which will be paid in cash during fiscal 2009.
WNS will integrate Call 24/7 into WNS Assistance, a division of WNS Global Services U.K., and a subsidiary of WNS. The deal will enable WNS to extend its market leadership position in accident claims management in the U.K. WNS Assistance and Call 24/7 each leverage cost-efficient claims processing, technology and engineering and collision-repair expertise to deliver quality service throughout the accident-management process.
Call 24/7 has respected clients like DaimlerChrysler and would strengthen WNS’ position as a leading auto claims administrator in the U.K. market.
Interestingly, insurance companies have tremendously increased their outsourcing over the past two years.
“I see mergers and acquisitions as being major factors in the move to outsourcing. With wider product offerings and geographies, insurance companies need to standardize processes involving disparate systems. Outsourcing will accelerate consolidation,” Ben Trowbridge, CEO for Alsbridge.
