Genpact acquires AI firm XponentL to bolster data services

NEW YORK – Genpact (NYSE: G), a global provider of advanced technology services and solutions with annual revenue of $4.85 billion and a market capitalization of $7.35 billion, announced today that it has completed the acquisition of XponentL Data, a company specializing in data products and artificial intelligence (AI) solutions. The acquisition is aimed at enhancing Genpact’s data and AI capabilities, domain expertise, and strategic partnerships, as part of its ongoing pivot towards advanced technology offerings. According to InvestingPro data, Genpact maintains a strong financial position with a current ratio of 2.45, indicating robust capability to fund strategic growth initiatives.

XponentL Data, now a part of Genpact, is recognized for its domain-led data strategy, design, and engineering capabilities, as well as its deep industry experience. The company has established partnerships with industry leaders such as Databricks, Amazon Web Services (AWS), and Microsoft, and delivers industry- and process-specific solutions designed to accelerate business value.

Balkrishan ’BK’ Kalra, President and CEO of Genpact, emphasized the strategic move, stating, "The future belongs to companies that deploy AI at speed and scale - on a bedrock of data expertise." He added that the acquisition underlines Genpact’s commitment to delivering innovative solutions to its clients and strengthens its ability to help them harness the full value of their data.

Tom Johnstone, CEO of XponentL Data, expressed enthusiasm for the shared vision of unlocking the power of data for clients, and the acquisition’s potential to elevate their solutions through Genpact’s global reach and extensive client base.

The acquisition is expected to fuel Genpact’s Service-as-Agentic-Solutions and the Genpact AI Gigafactory, contributing comprehensive domain solutions in Life Sciences and Healthcare and deep expertise in enterprise data and AI strategy. XponentL’s integration into Genpact is also anticipated to create a foundational intelligence capability that can drive operational efficiency and business growth in the era of agentic AI.

XponentL is headquartered in Pennsylvania and operates globally. Johnstone will continue to lead the XponentL business, with all employees joining Genpact. The financial terms of the transaction, which closed today, were not disclosed.

This move by Genpact is a clear indicator of the company’s strategic direction towards an AI-first future, as it seeks to enhance its service offerings in the increasingly competitive digital transformation landscape. InvestingPro analysis suggests the company is currently undervalued, with a favorable Financial Health Score of "GREAT" and strong profitability metrics. The information for this article is based on a press release statement and InvestingPro data, which offers comprehensive analysis through its Pro Research Report, available for over 1,400 US stocks including Genpact.

In other recent news, Genpact Limited reported its first-quarter results, surpassing analyst expectations with adjusted earnings per share of $0.84 and revenue of $1.22 billion, slightly above the consensus estimate of $1.21 billion. Despite this, the company’s guidance for the second quarter and full year 2025 fell short of expectations, with projected EPS and revenue figures lower than analyst forecasts. Additionally, Jefferies adjusted its price target for Genpact to $52.00 from $56.00, while maintaining a Buy rating, citing delays in several large deals affecting the 2025 revenue growth estimate.

During Genpact’s recent annual general meeting, shareholders approved the compensation for executive officers and elected all nominees for the Board of Directors, reflecting strong shareholder support. KPMG Assurance and Consulting Services LLP was also appointed as the independent registered public accounting firm for the fiscal year 2025. Meanwhile, Genpact’s Data-Tech-AI segment showed a revenue increase of 11.1% year-over-year, contributing to the company’s overall performance.

Jefferies analysts noted that Genpact’s management appears cautious in their forecasts due to uncertain market conditions, but they remain optimistic about the company’s potential if certain issues are resolved. Genpact continues to focus on innovation and client relationships, having repurchased approximately 1.2 million common shares during the quarter for around $63 million. Despite the challenges, the company remains committed to its strategic goals and shareholder engagement.

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