The billion-dollar acquisition of BPO firm Intelenet will help Teleperformance strengthen its presence in the Indian market and the combined entity has the potential to generate USD 500 million in revenue annually, Intelenet CEO Bhupender Singh said today.
French outsourcing firm Teleperformance had announced the acquisition of Intelenet from private equity major Blackstone last week for USD 1 billion. The transaction is expected to close by September 30, subject to regulatory approvals and other customary closing conditions.
Teleperformance was actually looking at building up its scale in India, both for international as well as local business, Singh told reporters.
"The combined Intelenet-Teleperformance, both actually at this stage are high growth companies. We are looking at, between the two of us, another USD 500 million in revenue every year," Singh told reporters.
While Teleperformance has its own team of about 2,500 people supporting its India domestic business, the company is looking at further strengthening the operations through Intelenet.
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"The intention at this stage is to keep it within the fold... We (Intelenet) are possibly one of the few companies in this sector which is actually profitable and we are growing at about 15 per cent. So there is no reason why we should not keep it. It is an attractive business from that perspective," he said.
Euronext-listed Teleperformance, which reported consolidated revenue of about USD 4.7 billion, has 2.23 lakh employees across 350 contact centres in 76 countries.
The deal, upon closing, is expected to be immediately accretive for Teleperformance shareholders, with a positive impact of around over 10 per cent on the group's earnings per share in 2018 on a pro forma basis.
Intelenet, which was founded in 2000 and is headquartered in Mumbai, had posted revenue of USD 449 million for the fiscal year ended March 31, 2018. For fiscal 2019, the company forecast significant additional revenue growth of at least 10 per cent and increased profitability.
Intelenet has 55,000 people and over 40 global delivery centres in eight countries. It serves over 110 clients in over 25 languages from across industry verticals like banking and financial services, travel, healthcare, retail and e-retail.
Blackstone had first invested in Intelenet in 2007 and in 2011, sold the latter to UK's Serco Group for 250 million pounds or then USD 383 million. In 2013, Blackstone bought back Intelenet from Serco for 250 million pounds (Rs 2,558 crore).
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