This acquisition strengthens the citizen offering of Teleperformance, already active in the United States, the United Kingdom, continental Europe, the Middle East, Asia and Africa.
PARIS, December 28, 2021– (COMMERCIAL THREAD) – Regulatory news:
Teleperformance (Paris: TEP), a leading global group in digitally integrated business services, today announced the acquisition of Senture, a leading business process outsourcing (BPO) operator for state government services -Unis, with Kingswood Capital Management, LP (Kingswood), a U.S. private investment firm based in Los Angeles, California.
Founded in 2003 and headquartered in London, Kentucky, with revenue of US $ 192 million and adjusted EBITA margin of 16% (2021e), Senture offers a unique model of delivering a citizen experience on land, well aligned with the requirements of the US government.
Government services (Federal, state and local) represent nearly 80% of Senture’s turnover, while commercial healthcare support services account for the remaining part. Senture’s citizen support activities are specifically designed to handle queries in the areas of health, education, transportation and social services.
For Teleperformance, the acquisition logic is based on three elements:
– Teleperformance pursues its strategy of vertical specialization by strengthening its citizen services, already active in the United States, the United Kingdom, Continental Europe, the Middle East, Asia and Africa; the acquisition opens up new growth opportunities in the United States.
– Senture benefits from a healthy financial situation, with strong revenue growth and a higher EBITA margin than Teleperformance.
– The operation is profitable to Teleperformance earnings per share of around + 5%.
The consideration for the transaction (enterprise value) is US $ 400 million. The acquisition is fully financed by debt. Paul Hastings LLP acted as legal counsel to Teleperformance in connection with the acquisition. Goodwin Procter LLP and Robert W. Baird & Co. Incorporated acted as legal and financial advisers, respectively, to Senture and Kingswood in connection with the acquisition.
Teleperformance Chairman and CEO Daniel Julien said: âSenture provides essential services to a large number of clients in the high potential government services market in the United States. It’s an excellent organization with a growing onshore network of over 4,500 advisors, 85% of whom work from home. This acquisition will strengthen the Group’s global leadership in the vertical of citizen service lines, which offers strong growth potential around the world, particularly in the United States. It also has a positive impact on Teleperformance’s profitability profile. This acquisition is part of Teleperformance’s vertical specialization strategy.
“Once completed, the transaction will create immediate value for Teleperformance shareholders as it is expected to generate profits on a pro forma basis for 2021”, he added.
âSenture is a truly differentiated asset in the government BPO industry,â said Alex Wolf, Managing Partner of Kingswood. âWe are extremely grateful to Senture and its management team for their partnership and relentless execution under our ownership, which has resulted in significant growth, strengthened market positioning and impressive diversification into new verticals. This investment is a perfect example of Kingswood’s added value, operational improvement strategy. “
Conference call with analysts and investors
A conference call to discuss the details of the transaction will take place on January 3e, 2022 at 6:15 p.m. CEST.
Call number :
France: +33 1 70 37 71 66
United Kingdom: +44 33 0551 0200
United States: +1 212 999 6659
The webcast will be available live or replayed on:
The slides of the conference call will be available at the following link:
Indicative investor calendar
2021 annual results: February 17, 2022
ABOUT THE TELEPERFORMANCE GROUP
Teleperformance (TEP – ISIN: FR0000051807 – Reuters: TEPRF.PA – Bloomberg: TEP FP), a leading global group in digitally integrated business services, serves as a strategic partner to the world’s largest companies in many sectors. It offers a One Office support service model combining three families of broad and high value-added solutions: customer experience management, back-office services and business process knowledge services. These end-to-end digital solutions ensure successful customer interaction and optimized business processes, anchored in a unique, comprehensive and high-tech approach. The Group’s more than 380,000 employees, based in 83 countries, support billions of connections each year in more than 265 languages ââand more than 170 markets, in a shared commitment to excellence as part of the âEasier, moreâ process. faster, safer â. This mission is supported by the use of reliable, flexible and intelligent technological solutions and the observance of the highest safety and quality standards in the industry, based on excellence in corporate social responsibility. In 2020, Teleperformance achieved consolidated revenue of â¬ 5,732 million ($ 6.5 billion, based on â¬ 1 = $ 1.14) and net profit of â¬ 324 million.
Teleperformance shares are traded on the Euronext Paris market, compartment A, and are eligible for the deferred settlement service. They are part of the following indices: CAC 40, CAC Support Services, STOXX 600, S&P Europe 350 and MSCI Global Standard. In the area of ââcorporate social responsibility, the Teleperformance share is part of the Euronext Vigeo Eurozone 120 index, the FTSE4Good index and the Solactive Europe Corporate Social Responsibility index (formerly the Ethibel Sustainability Excellence Europe index) .
For more information: www.teleperformance.com Follow us on Twitter: @teleperformance
See the source version on businesswire.com: https://www.businesswire.com/news/home/20211228005136/en/
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