Teleperformance has made a move to acquire Majorel, which – if accepted – would result in the formation of a $12BN company with a large presence in all major economies.
The global digital business services company, Teleperformance, has offered €3BN cash and €1BN of Teleperformance shares in exchange for all of Majorel’s shares.
The combined Teleperformance-Majorel company would create geographical synergies, deepen expertise across verticals, scale-up capabilities, broaden portfolios, and allow Teleperformance to achieve its 2025 revenue objective of €10 billion two years early.
Daniel Julien, Chairman and CEO of Teleperformance, said:
“At the closing of the deal, thanks to the complementary capabilities of our two groups, clients will benefit from a unified leading, high-quality force operating in all the key markets around the world: the Americas, Europe, India, Asia-Pacific, Middle East, and Africa.
“We are a high-touch, high-tech business. We leverage technology to augment our people resources. Both companies are driven by shared common values, the signature of the UN Global Compact, and our commitment to be certified as “best places to work”, and we will offer significant career development opportunities all around the world.”
This is an immediate win-win deal for the shareholders of both groups, and the common commitment of the leadership of both groups is to supercharge our creation of value.
The majority shareholders of Majorel have already committed to selling their Majorel shares and will receive Teleperformance shares in return, depending on how the other shareholders vote.
In addition, the management and supervisory board of Majorel have reportedly welcomed the offer, and they believe that accepting it would be in the best interest of the company, shareholders, employees, and other stakeholders.
The transaction is aligned with Teleperformance’s ‘Cube’ strategy, aimed at creating parallel lines of business, building industry domain expertise, and expanding complementary geographical territory.
Teleperformance’s strength in servicing in the Americas would be complemented, for example, by Majorel’s strength in Europe.
The acquisitions would also lead to a scaled-up presence in Asia-Pacific and Africa.
The company would also deepen its expertise across verticals with a well-diversified client portfolio, such as banking and financial services, technology, automotive, travel, energy and utilities, insurance, retail, and government services verticals.
Trust and safety would also receive greater scale and capabilities, and digital transformation services would gain a broad portfolio.
Through increased efficiency and scale, new product development, and sharing of best practices, combined materials are expected to be between €100-150 million.
Thomas Mackenbrock, CEO of Majorel, said: “Becoming part of the TP [Teleperforance] family is the next natural step in our journey.
These are exciting prospects for our clients and team members to join forces with the Teleperformance team that has paved the way in global digital services in the last four decades.
“We share the same core values and believe that this new combination will provide many opportunities for all stakeholders.”
Elsewhere, Teleperformance made it into the coveted top right corner of the latest Gartner Magic Quadrant for Customer Service BPO Providers.
Gartner highlighted the reach and scale of Teleperformance’s TP Cloud Campus as a key strength and differentiator. It also noted Teleperformance’s digital innovation and impressive client retention rates.