We have been noticing an active M&A market in the BPO and CX software space this year. From CallMiner receiving a $75 Million funding from GS Growth (an investment unit of Goldman Sachs) to TTEC acquiring Serendebyte, there is a push towards technology that facilitates customer insights and automation.
Five9’s acquisition of Virtual Observer (fka CSI) also helps to solidify the thesis of integrating CCaaS (Contact Center as a Service) and WFO (Workforce Optimization) solutions, in line with what we have observed with the other leaders in the CCaaS space – Genesys, NICE inContact and Talkdesk.
Here are some of the transactions in the BPO and CX software space that caught my attention.
Regards, Mono
Mono Bhattacharya
Partner
O: 513.229.9042 | M: 513.284.8355
E: mono@rkca.com | www.rkca.com
1077 Celestial Street | Cincinnati, OH 45202
BPO / CX Software M&A Update
CallMiner Raises $75 Million in New Funding From Goldman Sachs
December 2019 – CallMiner Inc., a developer of speech-analytics software powered by artificial intelligence, has raised $75 million in new venture funding from GS Growth, an investment unit of Goldman Sachs Inc.
CallMiner’s software platform, called Eureka, uses AI to analyze conversations between customers and a company’s representatives. Among other things, the platform can recommend what an agent should say and determine if employees’ answers comply with company protocols. Eureka uses natural language processing and other techniques to understand the words and sentiment used in calls, web chats, emails, surveys and texts. Jeff Gallino, CallMiner’s founder and chief technology officer, said his company plans to use the money to enhance Eureka, including helping it make more prescriptive recommendations.
CallMiner previously raised $67 million in 2015 from investors including NewSpring Capital, Jackson Square Ventures and Sigma Prime Ventures.
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24-7 Intouch Acquires Knoah Solutions
February 2020 – 24-7 Intouch acquires Knoah Solutions, an offshore outsourcing company providing multi-channel customer and technical support, and business process outsourcing services, for an undisclosed amount. This partnership is designed to support the growing need for globally diverse customer service solutions, while leveraging operational best practices from both companies.
With this acquisition, 24-7 Intouch continues to expand its global presence with over 18,000 employees servicing over 30 languages from 22 sites in nine countries. Most significantly, Knoah Solutions will signal 24-7 Intouch’s entry into the Indian market with over 1,200 seats of production capacity in Hyderabad, already partnering with several high growth technology and retail clients. In addition, this acquisition will expand the Company’s Latin American footprint with a 900-seat site in Honduras and additional production capacity in Guatemala. It also adds a second site in Las Vegas.
“This merger is an exciting opportunity to continue to grow our global footprint, leveraging several geographies and languages to enhance the customer experience for the brands we partner with,” said Greg Fettes, Co-Founder and CEO of 24-7 Intouch.
Medallia Acquires LivingLens
February 2020 – Medallia, Inc. acquired Living Lens Enterprise Ltd for approximately $26 million on February 20, 2020. The consideration will be paid in cash.
LivingLens operates a video intelligence platform for brands, agencies, and technology providers. The company’s platform captures and analyses video content through speech, actions, and sentiment, as well as translates human behavior into insights.
Medallia, Inc. provides an enterprise Software-as-a-Service platform internationally. The company’s platform utilizes deep learning-based artificial intelligence technology to analyze structured and unstructured data from signal fields in human, digital, and Internet of Things interactions.
Medallia’s Recent Acquisitions
- Crowdicity, 2019
- Zingle, 2019
- io, 2019
- Cooladata, 2019
- Strikedeck, 2019
- Kampyle, 2016
TTEC Acquires Serendebyte
February 2020 – TTEC Holdings, Inc., a leading digital global customer experience technology and services company focused on the design, implementation and delivery of transformative solutions for many of the world’s most iconic and disruptive brands, announced that it has acquired a majority interest in Serendebyte, an intelligent automation CX solutions provider.
Serendebyte helps companies transform their customer and employee experiences by improving sales process automation, customer service, marketing automation and operations/compliance for large enterprises. Serendebyte strengthens TTEC’s ability to deliver intelligent automation solutions globally. The acquisition also expands TTEC’s network of engineers and developers to provide a combination of robotics-powered case management, AI and analytics.
“Intelligent automation, including robotic process and desktop automation (RPA and RDA), is one of the fastest growing applications in the enterprise software category, thanks to the speed and efficiencies it provides to customers, associates and brands alike. This acquisition significantly advances the pace and scale at which we can deliver end-to-end CX automation to our clients via TTEC’s Humanify Technology Platform. The depth and breadth that Serendebyte brings to our CX tech solutions means that clients can transform faster and deliver frictionless, digital-first experiences,” said Jonathan Lerner, president of TTEC Digital.
TTEC also announced a strategic partnership with Pegasystems, Inc on February 18. This partnership will empower clients with digital transformation solutions to optimize customer experiences within their contact centers. With the partnership, Pega’s intelligent automation and customer engagement suite, combined with TTEC’s Customer Experience as a Service platform, will provide the backbone of optimized, digitally driven employee and customer experiences managed by TTEC Digital.
TTEC’s Recent Acquisitions
- Strategic Communications Services, 2018
- Technology Solutions Group, 2017
- iKnowtion, 2016
Upland Software Acquires Localytics
February 2020 – Upland Software, Inc. acquired Char Software, Inc, dba Localytics, for $68 million (3.5x recurring revenue) on February 6, 2020. Under the terms of transaction, Upland Software, Inc. paid $67.7 million in cash at closing (net of cash acquired), paid out of cash on hand, and a $0.3 million cash holdback payable in 12 months (subject to indemnification claims).
Upland expects the acquisition to generate annual revenue of approximately $20.0 million, of which $19.2 million is recurring, subject to reductions for deferred revenue discount as a result of GAAP purchase accounting, estimated at $4.5 million for the remainder of 2020. The price paid for the acquisition is within Upland’s target range of 5-8x pro forma Adjusted EBITDA and Localytics will generate at least $9.0 million in Adjusted EBITDA annually once fully integrated. The acquisition will be immediately accretive to Upland’s Adjusted EBITDA per share.
Localytics develops a marketing and analytics engagement mobile application. The company’s application’s solutions include understanding engagement effectiveness, personalize engagement, and delivering Omni channel engagement.
Upland’s Contact Center Productivity solution suite offers a comprehensive, cloud-based, contact center agent experience focused on productivity. By empowering agents with access to knowledge and enabling them to properly engage with customers, organizations can increase retention, drive customer loyalty, and convert more conversations into sales – all while capturing feedback in real-time, throughout the customer journey.
Upland’s Recent Acquisitions
- InGenius, 2019
- CIMPL, 2019
- Daily Inches, 2019
- PostUp, 2019
- Adestra, 2018
- Qvidian, 2017
- Waterfall International, 2017
- RightAnswers, 2017
- Omtool, 2017
- LeadLander, 2016
Five9 to Acquire Virtual Observer/Coordinated Systems
February 2020 – Five9, Inc. (NASDAQ: FIVN), the leading provider of the intelligent cloud contact center, today announced the execution of a definitive agreement to acquire Virtual Observer, formerly known as CSI, an innovative provider of cloud-based Workforce Optimization (WFO) solutions. Virtual Observer has been a Five9 partner for over three years with more than 150 joint customers. The transaction is expected to close by March 20.
With this acquisition, Five9 expands its portfolio to include a cloud-based and integrated WFO offering as a complement to the company’s ongoing strategic partnerships with leading WFO providers focused on delivering best-of-breed experiences for large enterprises.
Five9’s Recent Acquisitions
- Whendu, 2019
