Genpact (NYSE: G) acquires XponentL Data to power AI gigafactory vision and deepen domain-led transformation

Genpact Limited (NYSE: G) has acquired Pennsylvania-based XponentL Data, a rising player in enterprise-grade data and artificial intelligence (AI) solutions, as part of a strategic expansion of its AI transformation capabilities. The transaction, announced and closed on June 5, 2025, supports Genpact’s pivot from traditional BPO to agentic, platform-driven AI services, building on its long-term Gigafactory initiative. While the financial terms remain undisclosed, the market has responded positively, propelling Genpact stock up more than 11.6% in pre-market trading on the day of the announcement.

This acquisition comes amid growing global enterprise demand for agent-based AI architectures, and Genpact is increasingly positioning itself as a trusted AI transformation partner capable of delivering full-stack innovation—from data engineering to AI orchestration.

Why Did Genpact Acquire XponentL Data?

Genpact’s acquisition of XponentL Data reflects a calculated move to scale its advanced data engineering, cloud-native integration, and domain-specific AI implementation services. XponentL has built a reputation for delivering mission-critical AI solutions across regulated verticals, particularly life sciences, healthcare, and financial services. Its ability to design data products, implement metadata-driven intelligence, and operationalize intelligent agent architectures makes it a synergistic fit for Genpact’s long-term transformation roadmap.

Balkrishan “BK” Kalra, President and CEO of Genpact, indicated that the transaction was driven by the belief that companies that master AI at speed and scale—anchored in data expertise—will dominate the future. He emphasized that Genpact’s goal is to deliver measurable value to clients through domain-specific digital solutions built on foundational AI models.

From the XponentL side, CEO Tom Johnstone noted that the companies share a vision of empowering enterprises to unlock the power of their data, and that Genpact’s global reach and existing enterprise relationships would help scale their solutions to greater impact.

What Does XponentL Data Add to Genpact’s Capabilities?

XponentL Data brings deep talent pools in data engineering, prebuilt tools for intelligent agent orchestration, and partnerships with Databricks, Amazon Web Services (AWS), and Microsoft Azure. The firm is known for architecting scalable data pipelines, semantic knowledge graphs, and industry-specific accelerators that compress time-to-value in transformation programs.

Michael Hartman, Senior Vice President at Databricks, welcomed the merger by describing it as a “unique combination of innovation and scale.” He highlighted XponentL’s early adoption of the Databricks Data Intelligence Platform and its leadership in deploying real-world agent-based solutions that embed analytics and AI directly into business workflows.

All XponentL employees will transition to Genpact, with Johnstone continuing to lead the unit. The company will retain its headquarters in Pennsylvania but integrate closely with Genpact’s Gigafactory and global delivery model.

What Is the AI Gigafactory and Why Does It Matter?

Genpact’s AI Gigafactory is a core initiative to shift from human-led delivery models to AI agent-enabled workflows that can function with autonomy, transparency, and domain intelligence. These agents are designed to observe, reason, and act across digital ecosystems, elevating Genpact from a traditional process optimizer to a strategic platform integrator.

By bringing XponentL into the fold, Genpact acquires plug-and-play capabilities to accelerate the Gigafactory’s buildout in sectors such as healthcare analytics, pharma supply chains, insurance claims management, and banking compliance. The goal is to productize expertise into agents that deliver repeatable, auditable business outcomes, aligning with evolving CIO expectations for Composable AI.

How Did the Market React to the Acquisition?

Genpact’s stock (NYSE: G) surged by 11.68% in pre-market trading on June 5, 2025, following the announcement. The rally suggests investor enthusiasm around Genpact’s ability to deliver inorganic growth through strategically aligned acquisitions. On June 4, the stock had closed at $42.62, marginally down by 0.28%, but the post-announcement lift brought it back into a bullish channel.

Analysts have highlighted that the XponentL deal marks a pivotal moment in Genpact’s digital acceleration strategy, particularly since the company had previously relied heavily on organic transformation. This shift to acquisition-led capability expansion has signaled to the market that Genpact intends to compete more aggressively with firms like Accenture, Cognizant, and Deloitte in full-spectrum digital services.

Is Genpact Stock Undervalued? A Valuation Perspective

Genpact’s trailing price-to-earnings (P/E) ratio as of June 5 stands at 14.25, based on EPS of $2.99. This compares unfavorably to its 10-year average P/E of 20.66, suggesting potential undervaluation. Analysts estimate a fair price of $46.75 by December 2025, implying an upside of nearly 16% from current levels.

From a liquidity standpoint, Genpact holds a current ratio of 2.45, indicating strong working capital and readiness to support further acquisitions or investments in innovation. The company has been reducing its reliance on commoditized process outsourcing, and margin expansion is expected as it scales AI services.

Institutional Sentiment: What Are FIIs and DIIs Signaling?

While Genpact is NYSE-listed, its significant India-based delivery presence makes FII/DII trends in Indian equities relevant. On June 5, Foreign Institutional Investors (FIIs) recorded net outflows of ₹208.47 crore, reflecting macro risk aversion tied to U.S. interest rate policy and emerging market volatility.

In contrast, Domestic Institutional Investors (DIIs) remained net buyers, infusing ₹2,382.40 crore into Indian equities, suggesting growing domestic confidence in Indian IT and digital service firms. This pattern supports broader sentiment that India-centric delivery firms with exposure to U.S. enterprise clients—like Genpact—remain attractive long-term plays, even amid short-term capital volatility.

What’s Next for Genpact’s AI and Platform Strategy?

The acquisition of XponentL is expected to be the first in a series of AI-centric plays by Genpact. Industry analysts believe that the company may now explore tuck-in acquisitions in synthetic data generation, multimodal AI pipelines, and domain-specific large language models (LLMs). There is particular interest in Genpact’s potential to launch AI-as-a-Service platforms for financial services and life sciences—two sectors where it already has deep consulting and delivery experience.

Partnership expansion with hyperscalers like AWS, Databricks, and Microsoft will also likely intensify. Genpact is already co-developing solutions in patient journey modeling, anti-fraud agent frameworks, and compliance observability using these platforms, and XponentL’s tooling will accelerate time-to-product.

Analyst and Investor Takeaways: Buy, Hold, or Watch?

From a buy-side perspective, Genpact remains a Buy/Hold hybrid, depending on investment horizon. The undervaluation, double-digit revenue growth outlook, and strong EPS make it attractive for long-term institutional portfolios. However, short-term volatility, potential integration friction, and earnings timing mismatches may deter aggressive entries in the immediate term.

Sell-side analysts view the company as a “sleeping AI enabler”, with underappreciated assets in decision analytics, data governance, and low-code orchestration. The XponentL acquisition puts Genpact squarely on the radar of tech funds rebalancing toward AI infrastructure and enterprise transformation names.