Agreement by Teleperformance to Attain Intelenet from Blackstone

Teleperformance announced that it has entered into a definitive agreement to acquire Intelenet from Blackstone. Intelenet is a major global provider of high-end omnichannel customer experience management, back-office, human resources and financial & administration services. The company has more than 110 blue chip clients worldwide, mostly in the English-speaking market, India and the Middle East.

Intelenet primarily serves the Banking, Financial Services and Insurance sector (BFSI), as well as the travel, transport & accommodation, e-commerce, e-services, and healthcare sectors.

Intelenet helps clients drive revenue growth, optimize operational efficiency, and reduce operational costs, while increasing end-customer satisfaction due to its integrated solutions:

• Solutions design created by a large consulting force with a wide range of expertise, including more than 200 highly skilled data scientists and business & process consultants
• Digital integration based on robotic process automation (RPA) technology
• Operational excellence, with 55,000 employees, working in over 40 delivery centers across India, the Philippines, the United Arab Emirates, Poland and Guatemala

Founded in 2000 and headquartered in Mumbai (India), Intelenet is managed by Bhupender Singh (IIM and IIT graduate), who was recognized as “CEO of the year” in 2018 at the ET Now HR Talent Management and Leadership Awards in India.

Intelenet’s growth momentum is strongly positive. For the fiscal year ended March 31, 2018, the company posted revenue of US$449 million, up + 10% year on year, and EBITDA of US$83 million, representing 18.5% of revenue vs. 17.4% the previous year. For fiscal year 2019, the company forecasts significant additional revenue growth of at least + 10% and increased profitability.

 The transaction will be completed for a total consideration (enterprise value) of US$1.0 billion. The deal is expected to have a positive impact of around + 10% on Teleperformance’s earnings per share before amortization of goodwill in 2018 on a pro forma basis. The net debt to EBITDA ratio on a pro forma basis should be below 2.5 at the end of 2018 and is expected to come down quickly.

The acquisition will be fully financed through debt provided by BNP Paribas, J.P. Morgan and Natixis, which may be replaced in whole or in part by a bond issue, subject to market conditions. Paul Hastings LLP and Linklaters LLP acted as legal advisors to Teleperformance on the acquisition and the financing, respectively, and Sullivan & Cromwell acted as tax advisor. J.P. Morgan acted as the exclusive financial advisor to Intelenet. Simpson Thacher & Bartlett LLP and Platinum Partners acted as legal advisors and Ernst & Young and KPMG acted as accounting and tax advisors, respectively, to Blackstone and Intelenet.