(AOF) – Teleperformance announced on Tuesday evening the acquisition of Senture from Kingswood Capital Management, an American investment firm based in Los Angeles, California. The amount of the transaction (enterprise value) is $ 400 million. The acquisition is fully financed by bank debt.
“Founded in 2003, based in London, Kentucky, with a revenue of $ 192 million and an adjusted EBITA margin of 16% (2021 forecast), Senture has a unique model of domestic solutions of assistance to the citizens, in perfect adequacy with the requirements of the administrations in the United States “, explained Teleperformance.
“Once finalized, the transaction will immediately create value for Teleperformance shareholders, with an increase in earnings per share on a pro forma basis for 2021,” said Daniel Julien, CEO of Teleperformance.
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– World leader in integrated digital solutions, created in 1978;
– Turnover of € 5.7 billion from 2 branches: for 89%, core services & Digital Integrated Business Services activities (customer relations, technical assistance, customer acquisition, back-office in human resources and accounting, consulting in business processes in analytics, automated systems and artificial intelligence) then “specialized services”, better marginalized (interpretation, management of visa applications, debt collection);
– 4 major linguistic areas: English-speaking area & Asia-Pacific for 35%, Europe & Africa for 26%, Spain & Latin America for 30% and India & Middle East for 9%;
– “Simpler, Faster, Safer” business model for administrations and multinationals with 3 strong points: “go-to-market” (coordinated approach to customers), expansion in Asia and investments in cybersecurity;
– Shattered capital, the founder Daniel Julien holding 2% of the shares and ensuring the chairmanship and general management of the board of directors of 17 members;
– Financial strength and agility (debt rated BBB), with € 5.2 billion in equity and over € 1.5 billion in liquidity.
Challenges
– 2020-2022 strategy focused on sustained internal growth, particularly in the BRICs, Mexico, Indonesia and Turkey, targeting sales of at least 7 billion
€
and an operating margin rate of 14.5%;
– Innovation strategy structured by the 700 members of TAP (technology, analysis, process): internally: harmonization of systems architecture, deployment of expert solutions (omnichannel customer experience, predictive models, automation, business process consulting) / externally: advice to companies in their transformation, cybersecurity with the GSOC center of the Eagle project, operational since June, global “TIEC” showroom in Silicon Valley;
– “Citizens of the planet” environmental strategy: 49% reduction by 2026, vs. 2019, in carbon emissions per employee, validated by SBTi / focused on reducing the carbon footprint, generated at 9/10
th
through electricity consumption and the mitigation of extreme weather risks, 40% of employees working in India, Mexico and the Philippines;
– Impact of the launch of Digital Integrated Business Services, specializing in banking, hospitals, transport and health, and of the “TP Cloud Campus” for managing teleworking;
– African expansion in 2020-2022;
– Integration of the American Health Advocate (digital health management).
Challenges
– Negative impact on the turnover of the Philippine peso / dollar, Brazilian real and Argentine peso / dollar parities, 45% of the turnover being denominated in the American currency;
– At the end of September 2021, sales up 31% at 1
er
quarter and net income quadrupled.
Very slight upturn in the French advertising market
After a very bad year 2020 due to the pandemic, the global advertising market is expected to break all its records this year. The French market should also benefit from this improvement. Amazon, which benefits from the very strong popularity of its market place, increasingly attracts advertisers and gradually consolidates its positions. According to the Unified Advertising Market Barometer (BUMP), in the first quarter of 2021, the total net advertising revenue of the French market amounted to 3.02 billion euros, a drop of 8.1% compared to the same period of 2019. However, this corresponds to a slight increase (+ 0.9%) over one year, driven by the continued development of digital technology. Over the period, it represented 1.5 billion euros, up 5.1% compared to the first quarter of 2019 and 9% compared to that of 2020. On the other hand, the segment of the five historical media (press, radio, television, cinema, outdoor advertising), fell 6% over one year. Outdoor advertising and cinema were once again particularly in difficulty. Television enjoyed a very slight increase (+ 0.9% over one year), to 747 million euros, while the press fell 3.9% over one year.