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EXLService to Acquire iMerit for Up to $310 Million to Expand Enterprise AI Offerings
EXLService Holdings, Inc., a Nasdaq‑listed global analytics and digital solutions provider, announced a definitive agreement to acquire iMerit, a California‑based AI data company, for up to $310 million in cash. The transaction will close in the third quarter of 2026 and consists of an upfront payment of $170 million plus up to $140 million in earn‑outs tied to milestone achievements over two years.
The deal brings iMerit’s Ango data platform into EXLService’s AI portfolio. Ango is a workflow‑automation platform that streamlines data preparation, model evaluation, and post‑training annotation for foundation models and computer‑vision systems. By adding Ango, EXLService aims to offer an end‑to‑end solution that covers data labeling, model fine‑tuning, and enterprise‑scale deployment.
Founded in 2012 by Radha Basu, iMerit has earned a reputation for training and evaluating foundation models and computer‑vision applications. Its investors include Khosla Ventures and the Michael & Susan Dell Foundation. Basu said the companies share a belief that high‑quality data is the foundation of AI success and expressed enthusiasm about combining EXLService’s industry expertise with iMerit’s technology.
EXLService’s chairman and CEO, Rohit Kapoor, said the acquisition strengthens the company’s AI strategy and helps clients move from experimentation to production. The statement followed EXLService’s 2024 acquisition of ITI Data, which also expanded the firm’s data‑centric services.
The deal comes amid a broader trend of enterprises accelerating AI adoption. McKinsey’s 2025 State of AI report, released in March 2025, found that 78 % of organizations use AI in at least one business function, up from 72 % in 2024 and 55 % in 2023. The report notes that while many companies experiment with AI, fewer have scaled solutions to production environments.
EXLService has positioned itself as a partner for that scaling phase. The company has integrated NVIDIA’s “Build Your Own Transaction Foundation Model” developer example into its AI and analytics offerings, and it hosts a global virtual event, AI in Action 2026, to help enterprises move beyond experimentation.
Ango is designed to support high‑quality annotation for image and video data, a critical component for training reliable computer‑vision models. The platform is SOC 2 compliant and offers automated accelerators to speed up labeling while maintaining quality.
The acquisition is expected to create synergies in data preparation, model evaluation, and deployment. EXLService’s existing client base spans insurance, healthcare, banking, retail, media, and utilities, and the added capabilities are intended to deepen service offerings across those sectors.
Financial analysts note that the earn‑out structure aligns incentives with performance and reflects the uncertainty of integrating new technology into a large enterprise environment. The upfront payment of $170 million represents the majority of the transaction value.
The deal also highlights the continued interest of venture capital in AI data and annotation companies. iMerit’s backers include Khosla Ventures, a firm known for early investments in AI and related technologies.
As the AI market matures, companies that can deliver end‑to‑end solutions—from data labeling to production deployment—are likely to gain a competitive edge. EXLService’s acquisition of iMerit is a step toward that goal.
The transaction is subject to customary closing conditions, including regulatory approvals. If completed, it will add iMerit’s workforce and technology to EXLService’s global operations.
The acquisition is part of a broader pattern of consolidation in the AI services sector, where larger firms seek to broaden their capabilities by acquiring specialized data‑annotation and model‑training companies.
In summary, EXLService’s purchase of iMerit for up to $310 million is intended to strengthen its enterprise AI offerings by adding a proven data‑annotation platform and expertise in foundation‑model training. The deal reflects the growing demand for high‑quality data services as organizations move AI projects from pilot stages to production.
The deal brings iMerit’s Ango data platform into EXLService’s AI portfolio. Ango is a workflow‑automation platform that streamlines data preparation, model evaluation, and post‑training annotation for foundation models and computer‑vision systems. By adding Ango, EXLService aims to offer an end‑to‑end solution that covers data labeling, model fine‑tuning, and enterprise‑scale deployment.
Founded in 2012 by Radha Basu, iMerit has earned a reputation for training and evaluating foundation models and computer‑vision applications. Its investors include Khosla Ventures and the Michael & Susan Dell Foundation. Basu said the companies share a belief that high‑quality data is the foundation of AI success and expressed enthusiasm about combining EXLService’s industry expertise with iMerit’s technology.
EXLService’s chairman and CEO, Rohit Kapoor, said the acquisition strengthens the company’s AI strategy and helps clients move from experimentation to production. The statement followed EXLService’s 2024 acquisition of ITI Data, which also expanded the firm’s data‑centric services.
The deal comes amid a broader trend of enterprises accelerating AI adoption. McKinsey’s 2025 State of AI report, released in March 2025, found that 78 % of organizations use AI in at least one business function, up from 72 % in 2024 and 55 % in 2023. The report notes that while many companies experiment with AI, fewer have scaled solutions to production environments.
EXLService has positioned itself as a partner for that scaling phase. The company has integrated NVIDIA’s “Build Your Own Transaction Foundation Model” developer example into its AI and analytics offerings, and it hosts a global virtual event, AI in Action 2026, to help enterprises move beyond experimentation.
Ango is designed to support high‑quality annotation for image and video data, a critical component for training reliable computer‑vision models. The platform is SOC 2 compliant and offers automated accelerators to speed up labeling while maintaining quality.
The acquisition is expected to create synergies in data preparation, model evaluation, and deployment. EXLService’s existing client base spans insurance, healthcare, banking, retail, media, and utilities, and the added capabilities are intended to deepen service offerings across those sectors.
Financial analysts note that the earn‑out structure aligns incentives with performance and reflects the uncertainty of integrating new technology into a large enterprise environment. The upfront payment of $170 million represents the majority of the transaction value.
The deal also highlights the continued interest of venture capital in AI data and annotation companies. iMerit’s backers include Khosla Ventures, a firm known for early investments in AI and related technologies.
As the AI market matures, companies that can deliver end‑to‑end solutions—from data labeling to production deployment—are likely to gain a competitive edge. EXLService’s acquisition of iMerit is a step toward that goal.
The transaction is subject to customary closing conditions, including regulatory approvals. If completed, it will add iMerit’s workforce and technology to EXLService’s global operations.
The acquisition is part of a broader pattern of consolidation in the AI services sector, where larger firms seek to broaden their capabilities by acquiring specialized data‑annotation and model‑training companies.
In summary, EXLService’s purchase of iMerit for up to $310 million is intended to strengthen its enterprise AI offerings by adding a proven data‑annotation platform and expertise in foundation‑model training. The deal reflects the growing demand for high‑quality data services as organizations move AI projects from pilot stages to production.
