EXL to Buy iMerit for $310 Million to Enhance AI Capabilities
ExlService Holdings, a worldwide data and AI firm, announced a conclusive deal to purchase iMerit, a company specializing in AI model training, evaluation, and reinforcement learning.
The deal is projected to finalize in the third quarter of 2026, pending standard closing conditions.
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The $310 million purchase includes an initial payment of $170 million, along with $140 million in incentives and earnouts over two years dependent on achieving certain milestones.
The decision enhances EXL’s capacity to assist organizations in realizing quantifiable results from AI, establishes collaborations with top foundational model creators, and broadens EXL’s influence in rapidly growing AI technology areas.
“As organizations reimagine their businesses with AI, success requires industry-specific data, rigorous evaluation and reinforcement learning to deliver reliable results in business-critical workflows,” says Rohit Kapoor, chairman and chief executive officer of EXL.
“The acquisition of iMerit strengthens EXL’s AI strategy and ability to help clients move from experimentation to production. By combining iMerit’s capabilities with EXL’s domain expertise and AI platforms, we are setting the standard for AI that is trusted, accountable and built to perform in the enterprise.”
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EXL will now be pivotal in the development of next-gen AI, utilizing iMerit’s connections with top foundation model companies. EXL and its clients will gain early understanding of how models are developed, adjusted, and enhanced. This also enables EXL to assist companies in developing purpose-built small language models customized for their data and processes.
iMerit reportedly improves EXL’s platform and human intelligence capabilities via its Ango platform and Scholars network.
Ango enhances complex data interactions through GenAI models, facilitating chain-of-thought reasoning, red teaming, and multimodal assessments. Scholars enhance EXL’s domain proficiency via iMerit’s worldwide network of specialists, comprising physicians, scientists, engineers, linguists, and other subject experts who facilitate human intelligence-driven feedback processes for reinforcement learning.
“We see EXL as an ideal leader in this defining moment for AI. We can build on our work with AI innovators and bring those insights to companies seeking to unlock their proprietary data,” says Radha Ramaswami Basu, chief executive officer and founder of iMerit.
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“Both companies share a belief that specialized high-quality data is the foundation of AI success. We are excited to multiply our impact through EXL’s industry expertise, complementary technology and trusted enterprise relationships.”
This acquisition further extends EXL into rapidly growing AI domains such as high technology, mobility, autonomous systems, and physical AI. iMerit’s proficiency in text, image, video, voice, and LiDAR data establishes a robust basis for AI solutions that drive robotics, self-driving vehicles, and smart real-world settings.