BPO Contact Center 2018 M&A Deals Recap

The following list of M&A is for illustrative purposes only. Contact us for a detailed list of deal comparables for your company. 

• 2018 – Strategic Communication Services acquired by TTEC (NASD: TTEC). Contact center acquired for $4.4M.

• 2018 – Teleperformance buys Intelnet from Blackstone for $1B. Indian BPO provider of outbound sales, analytic services and customer services.

• 2018 – StarTek, Inc. (NYSE: SRT) business process outsourcing (BPO) acquires Aegis for $230M.

• 2018 – Convergys acquires Synnex for $2.8B in cash/stock. Global BPO deal.

BPO Contact Center Industry Deal Commentary.

• 293+ acquisitions since 2010.

• 95 acquisitions in 2018 across BPO outsourcing such as:

  • Acquisition of Business intelligence services such data management services, AdaptiveInsights, Tableau and other analytics partners and solution resellers 

  • Consolidation of industry centric marketing & lead generation firms with MarTech, CRM, BI

  • Consolidation of ERP, PSA, and BI implementation capabilities

  • Consolidation of staffing and outsourcing

  • Acquisition of Tools for strategic CFOs, CXOs, and managers

• Valuations remain flat for traditional BPO services, i.e. BPO valuation in 2018 similar to 2011, especially for outsourcing firms that are missing tech enabled platforms with a modern stack that includes apps, tools, chatbots, and workflow automation. Premium for BPO models that have gone beyond traditional "lift and shift" and traditional labor arbitrage nearshore/offshore. 
  

BPO Outsourcing Industry Milestones Recap Summary. 

• 2018 – More than 50 CRM implementation firms acquired over the past 36 months

• 2017 – Proliferation of new digital sales models, digital ecosystems, marketplaces, & communities

• 2017 – More than 500 service providers greater than $1m on cloud-SaaS modern solutions

• 2016 – Vista Equity Partners, private equity firm, acquires Marketo, marketing automation software in in LBO for $1.8B.

• 2016 – Netsuite acquired by Oracle for $9.3B.

• 2015 – Proliferation of hundreds of venture funded industry solutions

• 2014 – Hubspot IPO: NYSE: HUBS

• 2013 – Launch of SaaS “FAO as a Service” , “Data as a Service”, “Marketing as a Service” , etc.

• 2012 – Pardot acquired by ExactTarget for $95.5m. ExactTarget acquired by SalesForce.com NYSE: CRM in 2013 for $2.5B.

• 2012 – Oracle buys marketing automation platform Eloqua for $871m based on Eloqua $90m revenue run-rate.

• 2010 - IBM acquires Unica (enterprise marketing management) for $480m.

• 2006 - Hubspot launches.