Teleperformance: The group continues its rise in the United States with the acquisition of Senture

(BFM Bourse) – The French champion of business services in integrated digital solutions acquires Senture, a major player in the management of business processes with administrations in the United States, for 400 million dollars. The title reached a new high on the Paris Stock Exchange.

A little more than a year after the acquisition of the online healthcare management and consulting platform in the United States, Health Advocate (for an amount of $ 690 million), Teleperformance is accelerating “its transformation through external growth “announced by its CEO Daniel Julien in” The Letter to Shareholders “of December 2020. The French specialist in call centers and customer relations indeed announces this Wednesday the takeover of Senture,” a major player in the management of business processes with the administrations in the United States “held by the investment company Kingswood Capital Management for 400 million dollars, entirely financed by bank debt.

“Founded in 2003, based in London, Kentucky, and with sales of $ 192 million and an adjusted EBITDA margin of 16% (estimate for 2021), Senture has a model unique domestic solutions for assistance to citizens, in perfect harmony with the requirements of administrations in the United States “underlines Teleperformance in its press release.

The group whose title has been listed on the CAC 40 since June 2020 justifies this operation for 3 reasons. First, it allows it to pursue its strategy of developing dedicated solutions by customer sector by strengthening its service offering to administrations, which “opens up new growth opportunities in the United States”. Teleperformance then underlines that Senture “benefits from a solid financial profile, with sustained growth in turnover and an EBITDA margin higher than that of the group (which raised its annual target from 14.5% to 15% at the start of This acquisition is finally “accretive of around + 5% on the net income per share of Teleperformance” estimates the tricolor group.

A network of more than 4,500 advisers in the United States

Government services (federal, state, and local) account for nearly 80% of Senture’s revenue, with commercial healthcare services accounting for the remaining 20%. These assistance activities consist of responding to user requests in the areas of health, education, transport and social services.

Senture provides essential services to a large number of clients in the high potential government services market in the United States. It is a remarkable company with a growing home network of over 4,500 advisors, 85% of whom work from home “congratulates Daniel Julien. The opportunity to recall that Teleperformance was already the second largest French side employer, behind Sodexo, with more than 380,000 employees in 83 countries. According to the manager, this acquisition will strengthen “the group’s global leadership in the key sector of services to citizens which offers strong growth potential in the world, particularly in the United States”.

“It also improves the group’s profitability profile [et] fits perfectly into [sa] specialization strategy by client sector “adds Daniel Julien, who specifies that” the transaction will immediately create value for Teleperformance shareholders, with an increase in earnings per share on a pro forma basis for 2021 “.

A takeover hailed by the markets

On the US side, Kingswood managing partner Alex Wolf says he is “extremely grateful to Senture and its management team for the quality of our partnership and their achievements when we were their shareholder.” “This has resulted in sustained growth, stronger market positioning and rapid diversification into new customer sectors,” he enumerates. The investment company itself finalized the acquisition of Senture in February 2021 for an undisclosed amount.

On the stock market, the operation was hailed by investors and the Teleperformance title took the top spot in the flagship index. At around 10:25 am, it is up 2.1% to 396 euros, which is a new historic high. It thus brings its progression to nearly + 47% since January 1, after having already recorded one of the best performances of the CAC in 2020 (+ 24.7%). The group is now valued at nearly 24 billion euros.

(with AFP)

Quentin Soubranne – © 2021 BFM Bourse

Are you following this action?

Receive all the information on TELEPERFORMANCE in real time:

Source link -84