Exlservice (EXLS) investor relations material

Deal rationale and strategic fit

• Acquisition strengthens AI model training, evaluation, and reinforcement learning capabilities, aligning with a strategy to serve both enterprise AI clients and foundation model companies.

• Deepens vertically specialized end-to-end AI capabilities and expands reach into high-growth sectors like high tech, mobility, healthcare, and regulated industries.

• Leverages relationships with leading foundation model companies, providing early insights into AI advancements and positioning for future growth.

• Integration of Ango platform and Scholars network enhances platform and human intelligence capabilities, supporting end-to-end AI adoption for enterprises.

• Creates a differentiated, trusted, and accountable platform for high-performing enterprise AI deployments.

Financial terms and conditions

• Total purchase price is up to $310 million, with $170 million upfront and up to $140 million in earn-outs or incentives over two years, contingent on achieving specified milestones.

• iMerit’s preliminary unaudited revenues were $59 million for the 12 months ended March 31, 2026, driven by GenAI growth.

• The acquisition is expected to accelerate growth rate without materially impacting near-term profitability.

• Earn-out is tied to revenue and profit metrics, aligning incentives and integration over a two-year period.

• Closing expected in Q3 2026, subject to customary closing conditions and antitrust review.

Synergies and expected cost savings

• Significant revenue synergies anticipated, especially in healthcare and other regulated industries where AI adoption is accelerating.

• Integration of iMerit’s expert network, Ango platform, and Scholars network with existing agentic platforms expected to drive cross-vertical growth and create an end-to-end AI solution.

• Early insight into model training and fine-tuning benefits enterprise clients.

• Multiplies impact of AI solutions across a broader enterprise audience.