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French outsourcing giant Teleperformance is set to acquire Blackstone-owned BPO company Intelenet for around $900 million-$1 billion, multiple people associated with the development told ET. A formal announcement is expected as early as Thursday evening.
Euronext-listed Teleperformance trumped PE group Carlyle and a host other potential suitors like Baring PE Asia, Goldman Sachs Principal Investment Area (PIA), KKR-backed Webhelp and Conduent, a spinoff of Xerox and US-based Synnex Corporation, who had evaluated the asset to clinch the deal through a keenly contested bidding process.
Sources said, Carlyle came back strongly during the final negotiations, held in New York before the deal was sealed with the French strategic.
This would be the second large India focussed transaction for Teleperformance in as many years having acquired parts of Essar Group’s BPO business in 2014.
Blackstone did not respond to mails sent to them late on Wednesday evening till the time of press while Teleperformance declined to comment on speculation.
ET in its May 31 edition reported that Teleperformance is the frontrunner for the asset.
Blackstone which bought back Intelenet in 2013 from UK’s Serco Group for £250 million (Rs 2,558 crore or $385 million), had mandated JP Morgan to run a formal process to sell the company. This would be one of the best exits for the world’s largest PE group from India. It currently owns 83% of the company with the remaining 17% held by employees and senior management team which will be selling their company for the 4th time.
Intelenet, currently, employs 55,000 people in the Americas, the UK, Europe, Middle East, India and the Philippines to cater to its 110 plus clients from 8 locations and 70 delivery centres. It had plans to double revenues to $1 billion by 2020 via acquisitions in digital technologies and on back of deals from Blackstone’s portfolio companies.
Founded in 1978, Teleperformance positions itself as a leader in outsourced omnichannel customer experience management, serves companies and administrations around the world, with customer care, technical support, customer acquisition, as well as with online interpreting solutions, visa application management services, data analysis and debt collection programs. In 2017, it reported consolidated revenue of $4.7 billion ..
The Group operates 171,000 computerised workstations, with 223,000 employees across 350 contact centres in 76 countries and serving 160 markets and manages programs in 265 languages and dialects on behalf of major international companies operating in a wide variety of industries. In 2014, Teleperformance paid $610 million to take over parts of Essar Group’s Aegis in the US, Philippines and Costa Rica. The company set up its India operations in 2001 and currently has over 12,800 empeloyees across across 6 centres in 3 Indian cities. With Intelenet, the French company can further leverage its sectoral complementarity too in BFSI, travel and hospitality sector.