The Outsourcing Week in Review (Mergers & Acquisitions): June 7, 2023

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

For this week’s fresh M&A action, we cover Teleperformance buying Everise, Accenture buying a Brazilian advisory, NashTech buying Kodus, and much more. It’s a busy week in outsourcing!

We begin with French outsourcing powerhouse Teleperformance and PE juggernaut Blackstone eyeing individual bids for outsourcing firm Everise Holdings. The PE firm Brookfield Asset Management owns Everise, and according to reports, has engaged Morgan Stanley to oversee the sale – and expects to raise approximately $1.4 billion. Brookfield purchased Everise in early 2021, from another PE, Everstone. There are speculations that other private equity firms may also show interest in the purchase. The potential acquisition follows a robust operational performance by Everise. The company’s EBITDA, or earnings before interest, taxes, depreciation, and amortization, has risen 40% since January.

Teleperformance has demonstrated a strong appetite for acquisitions. In 2018, it acquired Intelenet Global Services from Blackstone for $1 billion. And just this April, the French business procured rival Majorel in a deal worth $3.3 billion. The French-listed company generates €8.2 billion revenues (TTM) with an EBITDA of €1.6 billion, and is valued at €8.9 billion. IT employs 380,000 people across 83 countries.

Meanwhile, Everise expects to generate $500 million revenue and $100 million profit for FY23, The Economic Times reported. Everise has strategically positioned itself in areas with low labor costs and high political and infrastructural stability. These areas include the United States, Guatemala, Ireland, the Philippines, Malaysia, Singapore, and Japan. This allows for a blend of domestic, nearshore, and offshore resources.

Teleperformance ranked #2 in the Time Doctor OA500 BPO Index, while Everise ranked #1015.

Another BPO giant, and Inside Outsourcing favorite, Accenture, intends to acquire Green Domus Desenvolvimento Sustentável, a sustainability consultancy based in Brazil. The move comes in response to a growing demand for advanced sustainability services, as only 7% of global companies are on track to achieve their net zero targets by 2050. The Intergovernmental Panel on Climate Change (IPCC) recommends capping emissions by 2030 and reaching net zero by 2050 to limit temperature rise to 1.5°C below pre-industrial levels. Net zero is achieved when total emissions are less than or equal to those removed from the environment.

We’re seeing another company pushing a North American expansion, as technology solutions provider NashTech acquired Knoldus. Knoldus modernizes enterprises by leveraging Functional Programming (Scala, Rust, Java) and Fast Data (Spark, Flink) ecosystems. The company has offices in Canada, the U.S., and Singapore and has two development centers in India. With this expansion, North American clients will gain access to NashTech’s 15 delivery centers located both onshore and offshore, promising round-the-clock development and support. NashTech maintains a wide range of partnerships with major cloud providers Google, AWS, and Azure to deliver cloud-native solutions to its clients. NashTech has achieved recognition as a leading company in the global outsourcing industry, having secured a place in the Top 100 of over 2,300 global outsourcing firms in the Time Doctor OA500.

Customer experience (CX) specialists TTEC (Teletech) is planting its flag in San Pedro Sula, Honduras, with a new delivery center. This move bolsters its nearshore capabilities to meet the evolving needs of its clients in the U.S. and Canada. This move is another marker on TTEC’s Latin American growth map, including Brazil, Colombia, Costa Rica, and Mexico, with additional regional expansions in the pipeline.

Visionary Solutions has announced the opening of a new facility in Orange County, California, expanding its BPO service offering across the U.S. West Coast. The Orange County site serves as an addition to Visionary Solutions’ existing facilities, namely their headquarters situated in Miami, Florida, and an offshore facility located in Santo Domingo, Dominican Republic.

Indian IT services firm Prodapt is expanding its footprint in Panama with a $7 million investment. The move will create about 500 jobs in cloud computing, artificial intelligence, and technical support while solidifying its nearshoring advantage in the region. “Prodapt is the first India-headquartered technology services and consulting firm to set up operations in Panama,” said Prodapt CEO Harsha Kumar. With a workforce spread across North America, Latin America, Europe, Africa, and Asia, Prodapt works with big firms such as Meta, Google, and Amazon. Prodapt is part of The Jhaver Group, a 128-year-old business conglomerate, which employs over 30,000 people across more than 80 global locations.

Cloud-native software provider Qualtrics announced the rollout of three contact center innovations to transform the customer service landscape. The new offerings — Real-Time Agent Assist (RTAA), Automated Call Summaries (ACS), and Frontline Team Assist — use AI (artificial intelligence) and machine learning to drive efficiency and quality in customer interactions. Qualtrics reports that more than 18,750 organizations are using its AI technology. The company has two headquarters located in Provo, Utah, and Seattle. It also has 28 offices worldwide.

Zappix, a provider of cloud-based Digital Self-Service solutions, is teaming up with BPO firm OP360 to offer seamless CX solutions to companies. The partnership marries Zappix’s robust digital self-service platform with OP360’s mastery of end-to-end customer experience solutions. Headquartered in the U.S., OP360 provides nearshore and offshore services from its offices in the Philippines, Colombia, and India. They are subscribed to the Outsource Accelerator (OA) Source Partner Program, a powerful tool that helps BPO firms with marketing, sales, and business intelligence.

Another OA Source Partner, ibex, has appointed Preeti Raina as its Country Manager for the U.S. Raina, a veteran operations leader who joined the company in 2020, will now directly report to ibex’s EVP of Operations David Wilkerson while overseeing U.S. operations. Before joining ibex, Raina spent 14 years at Conduent, leading several high-profile client accounts. With 22 years of extensive leadership experience in the BPO sector, Raina is known for steering Operations Delivery and Operations Excellence teams. ibex has over 30,000 employees across multiple global locations, including the U.S., Pakistan, the Philippines, Jamaica, Nicaragua, Honduras, and Senegal.

In a vibrant, almost frenetic dance of growth and acquisition, the BPO sector is spinning faster than a fidget spinner at a boredom conference!

The outsourcing M&A news this week

2 June 2023

• DealHub unveils subscription management platform – read article…
• UJET announces contact center integration with Microsoft Teams – read article…
• Lightspeed launches new features to support omnichannel retailers – read article…​

1 June  2023

• Qualtrics rolls out 3 new contact center offerings – read article…
• TTEC unveils new CX center in Honduras – read article…
• Broadridge appoints new sales director to boost Northern Europe sales – read article…

31 May 2023

• Zappix, OP360 collaborate for seamless customer experience – read article…
• Visionary Solutions expands operations, opens new California site – read article…
• NashTech broadens North American presence with Knoldus acquisition – read article…

30 May 2023

• ibex appoints Preeti Raina as U.S. Country Manager  – read article…
• Accenture to expand sustainability service with Green Domus deal – read article…
• Teleperformance, Blackstone compete for Everise Holdings acquisition – read article…

29 May 2023

• Prodapt invests $7Mn to expand Panama operations – read article…
• Mphasis, Kore.ai launch partnership to leverage AI solutions – read article…
• SharpenCX buys Webtext to enhance contact center – read article…