This acquisition strengthens Teleperformance’s citizen lines of
service, already active in the United States, UK, Continental
Europe, Middle East, Asia and Africa.
Regulatory News:
Teleperformance (Paris:TEP), a leading global group in digitally
integrated business services, announced today that it has acquired
Senture, a significant business process outsourcing (BPO) operator
for government services in the United States, from Kingswood
Capital Management, L.P. (Kingswood), a US private
investment firm based in Los Angeles, California.
Founded in 2003 and headquartered in London, Kentucky, with
revenue of US$192 million and an adjusted EBITA margin of 16%
(2021e), Senture offers a unique onshore citizen experience
delivery model, well aligned with US government
requirements.
Government services (Federal, State and Local) represent
nearly 80% of Senture’s revenue, while commercial healthcare
support services represent the remaining portion. Senture’s citizen
support activities are specifically designed to handle queries in
healthcare, education, transportation and social services.
For Teleperformance, the rationale of the acquisition is
supported by three factors:
- Teleperformance is pursuing its vertical specialization
strategy by strengthening its citizen lines of service, already
active in the United States, UK, Continental Europe, Middle East,
Asia, and Africa; the acquisition is opening up new opportunities
for growth in the US.
- Senture benefits from sound financials, with strong top
line growth and an EBITA margin above that of Teleperformance.
- The operation is accretive to Teleperformance’s
earnings per share by around +5%.
The consideration for the transaction (enterprise value) is
US$400 million. The acquisition is fully financed through debt.
Paul Hastings LLP acted as legal advisors to Teleperformance in
connection with the acquisition. Goodwin Procter LLP and Robert W.
Baird & Co. Incorporated acted as legal and financial advisors,
respectively, to Senture and Kingswood in connection with the
acquisition.
Teleperformance Chairman and Chief Executive Officer Daniel
Julien, said: “Senture delivers critical services to a large
number of clients in the high-potential government services market
in the United States. It is a great organization with a growing
onshore network of more than 4,500 advisers, of which 85% work from
home. This acquisition will reinforce the Group’s global leadership
in the citizen lines of service vertical, which offers strong
potential growth worldwide, notably in the US. It also positively
impacts Teleperformance’s profitability profile. This acquisition
is consistent with Teleperformance’s vertical specialization
strategy.”
“When completed, the deal will create immediate value for
Teleperformance shareholders as it is expected to be accretive to
earnings on a pro forma basis for 2021,” he added.
“Senture is a truly differentiated asset in the government BPO
industry,” said Alex Wolf, Managing Partner of Kingswood.
“We 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 value-added,
operational improvement strategy.”
*Business Process Outsourcing
Conference call with analysts and investors
A conference call to discuss details of the transaction will be
held on January 3rd, 2022 at 6:15 pm CEST.
Dial-in-number: France: +33 1 70 37 71 66 United Kingdom: +44 33
0551 0200 USA: +1 212 999 6659
The webcast will be available live or for delayed viewing at:
https://channel.royalcast.com/landingpage/teleperformance/20220103_1/
The slides of the conference call will be available on the
following link:
https://www.teleperformance.com/en-us/investors/publications-and-events/other-events/
Indicative investor calendar
2021 annual results: February 17, 2022
ABOUT 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 industries. It offers a One
Office support services model combining three wide, high-value
solution families: customer experience management, back-office
services and business process knowledge services. These end-to-end
digital solutions guarantee successful customer interaction and
optimized business processes, anchored in a unique, comprehensive
high tech, high touch approach. The Group's 380,000+ employees,
based in 83 countries, support billions of connections every year
in over 265 languages and over 170 markets, in a shared commitment
to excellence as part of the “Simpler, Faster, Safer” process. This
mission is supported by the use of reliable, flexible, intelligent
technological solutions and compliance with the industry’s highest
security and quality standards, based on Corporate Social
Responsibility excellence. In 2020, Teleperformance reported
consolidated revenue of €5,732 million (US$6.5 billion, based on €1
= $1.14) and net profit of €324 million.
Teleperformance shares are traded on the Euronext Paris market,
Compartment A, and are eligible for the deferred settlement
service. They are included in the following indices: CAC 40, CAC
Support Services, STOXX 600, S&P Europe 350 and MSCI Global
Standard. In the area of corporate social responsibility,
Teleperformance shares are included in the Euronext Vigeo Eurozone
120 index, the FTSE4Good index and the Solactive Europe Corporate
Social Responsibility index (formerly Ethibel Sustainability
Excellence Europe index).
For more information: www.teleperformance.com Follow us on
Twitter: @teleperformance
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211228005136/en/
FINANCIAL ANALYSTS AND INVESTORS Investor relations and
financial communication department TELEPERFORMANCE Tel: +33 1 53 83
59 15 investor@teleperformance.com
PRESS RELATIONS Europe Karine Allouis – Leslie
Jung-Isenwater – Laurent Poinsot IMAGE7 Tel: +33 1 53 70 74 70
teleperformance@image7.fr
PRESS RELATIONS Americas and Asia-Pacific Mark
Pfeiffer TELEPERFORMANCE Tel: + 1 801-257-5811
mark.pfeiffer@teleperformance.com
Teleperformance (EU:TEP)
Historical Stock Chart
From Nov 2024 to Dec 2024
Teleperformance (EU:TEP)
Historical Stock Chart
From Dec 2023 to Dec 2024