Concentrix has completed a $4BN move for fellow customer experience BPO Webhelp.
Interestingly, in April – when the deal was first touted – the price tag stood at $4.8BN.
While Concentrix did not address the price drop, it no longer referred to the deal as an “acquisition”. Instead, it’s a “combination”.
In line with that change of language, Concentrix will temporarily operate under the name “Concentrix + Webhelp”.
Nevertheless, it’s in the process of finalizing a new permanent name.
That name will help Concentrix refresh its brand identity as it gains a much more significant presence across Africa, Europe, and Latin America.
With that joint global footprint, Concentrix + Webhelp will enjoy a six to eight percent share of the BPO market – according to Everest Group.
Now, Chris Caldwell, CEO of Concentrix + Webhelp, isolates opportunities to take this further.
During an earnings call, he stated:
We see a strong pipeline of opportunities as a combined Concentrix Webhelp organization that we would not have been able to pursue prior to the combination.
Those prospects stem from its expansive expertise, reach, and resources.
Moreover, the companies can attempt to cross-sell their tools to each other’s clients.
For example, Concentrix opens up a new base for its experience design and voice of the customer (VoC) solutions – which often receive rave reviews.
Indeed, the latter only placed behind VoC titan Medallia in the latest Forrester Wave market report.
Investors likely recognize such opportunities, with Concentrix shares surging by 10 percent on the news of the merger’s completion.
That spike comes even after the business announced that it missed its revenue estimates last quarter during the same earnings call.
More On the Market Opportunity for Concentrix + Webhelp
Going deeper on the advantages Concentrix + Webhelp can offer customers, Caldwell added: “This combination brings new expertise such as know your customer and anti-money laundering and payment services for our financial clients.
[It also brings] IT services at scale in EMEA, deeper domain expertise in a number of our core verticals, and helps create a robust footprint spanning 70-plus countries, enabling us to offer tailored solutions on a global scale.
Those new capabilities will allow Concentrix to continue competing at the forefront of the customer experience BPO space, which is rapidly consolidating.
For instance, Teleperformance moved for Majorel, HGS acquired TekLink, and Wipro rolled up Capco in recent months. These are just a handful of examples.
Smaller market rivals will likely have to tailor their offerings for specific sectors or niches to stand out and compete with these powerhouses.
Webhelp did this itself, gaining an iron-clad reputation for its expertise in legal services, a differentiator that inspired its market growth.
Kathryn Marinello, Concentrix Chair of the Board, appeared excited to gain such expertise – alongside Webhelp’s heralded Lead Factory solution and Gobeyond Partners consulting firm.
Marinello also announced that Olivier Duha, Webhelp Co-Founder and CEO, will become Vice Chair of our Board of Directors.
Meanwhile, Nicolas Gheysens, Partner at Groupe Bruxelles Lambert (GBL) – the largest shareholder in Webhelp – will join the board.
“We are fortunate to add such strong skill sets with deep background in the customer experience industry to our Board,” said Marinello.
With the addition of Olivier and Nicolas, we expand our international expertise in leading large, complex multinational companies on a successful path for growth.
That is perhaps a significant coup after Duha’s remarkable run as CEO, culminating in Webhelp’s “leader” positioning in the latest Gartner Magic Quadrant for Customer Service BPO.
Yet, as these market giants team up and the competition at the market’s forefront fades – hopefully – the potential for smaller players to diversify and stand out will grow.