As the impact from COVID-19 outbreak continues to evolve, I hope you and family are healthy and safe as we work through these unprecedented times.
Here are some of the transactions in the BPO and CX software space that caught my attention in March.
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
Genesys Telecommunications Laboratories, Inc. acquired nGUVU Technologies Inc. from Brightspark Holdings, Inc. and Desjardins Business Capital régional et coopératif
March 2020 – Genesys Telecommunications Laboratories, Inc. acquired nGUVU Technologies Inc. from Brightspark Holdings, Inc. and Desjardins Business Capital régional et coopératif on March 3, 2020. Post-acquisition, nGUVU will join the Genesys team. Genesys Telecommunications Laboratories, Inc. completed the acquisition of nGUVU Technologies Inc. from Brightspark Holdings, Inc. and Desjardins Business Capital régional et coopératif on March 3, 2020.
nGUVU Technologies Inc. develops cloud-based gamification and machine learning software for contact centers. Its software solutions use machine learning and behavioral analytics to create sustained agent engagement in contact centers. The company is based in Montréal, Canada.
Recent Acquisitions:
- Altocloud, 2018
- Silver Lining Solutions, 2017
- Interactive Intelligence Group, 2016
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Zendesk, Inc. Announces Partnership with Tata Consultancy Services
March 2020 – Zendesk, Inc. announced a strategic alliance with Tata Consultancy Services to provide enterprise grade CRM solutions for large Enterprises. The partnership combines Zendesk’s support, sales and engagement software solutions together with TCS contextual knowledge and experience in digital transformation. Zendesk and TCS will collaborate and more efficiently solve companies’ increasingly complex technological requirements and provide powerful CRM custom solutions and integrations. In 2020, it is predicted that customer experience will surpass both price and quality of product as a brand’s key differentiator.
As part of this alliance, global companies will benefit from TCS technology expertise and Zendesk’s support, sales, and engagement software to meet customers’ rapidly evolving demands and transform their experience. This includes alignment between TCS industry leading consulting, implementation and optimization services with Zendesk’s CRM product portfolio. Access to TCS’ deep expertise across industries including financial services, manufacturing, retail, and more. Partnership announcement with TCS comes on the heels of Zendesk’s recent Support Suite, Sales Suite and Sunshine announcements. These service-first CRM solutions enable service and sales teams to instantly connect with their customers and have natural conversations across all touchpoints.
Zendesk’s Recent Acquisitions:
- Smooth Technologies, 2019
- FutureSimple, 2018
- Outbound Solutions, 2017
- We Are Cloud SAS, 2015
Tata Consultancy’s Recent Acquisitions:
- The BridgePoint Group, 2018
- W12 Studios, 2018
- IGT Solutions, 2017
- CMC, 2015
Cognizant Technology Solutions Corporation entered into an agreement to acquire Lev
March 2020 – Cognizant Technology Solutions Corporation (NasdaqGS:CTSH) entered into an agreement to acquire Lev plus on March 23, 2020. The transaction is subject to certain closing conditions an is expected to close in the first quarter of 2020.
Lev (formerly Levementum) is a premier digital consultancy that connects brands with their customers through Salesforce products. The Company has locations in Indiana and Arizona, and have remote employees across the world.
Recent Acquisitions:
- Code Zero, 2020
- Contino Solutions, 2019
- Zenith Technologies, 2019
- Meritsoft, 2019
- Oy Samlink, 2019
- Mustache, 2019
- Softvision, 2018
- Advanced Technology Group, 2018
- SaaSForce Consulting, 2018
- Hedera Consulting, 2018
- Bolder Healthcare Solutions, 2018
- Zone, 2017
- Netcentric, 2017
- TMG Health, 2017
- Brilliantservice, 2017
- Adaptra Group, 2016
- KIS Information Services, 2016
- Mirabeau, 2016
- Frontica Business Solutions, 2016
- Idea Couture, 2016
- ReD Associates, 2016
- KBACE Technologies, 2016
Veritas Capital Fund Management, L.L.C entered into a definitive agreement to acquire U.S. State and Local Health and Human Services Business from DXC Technology Company (NYSE:DXC) for $5 billion
March 2020 – Veritas Capital Fund Management, L.L.C entered into a definitive agreement to acquire U.S. State and Local Health and Human Services Business from DXC Technology Company (NYSE:DXC) for $5 billion on March 10, 2020.
Following the close of the transaction, DXC Technology will retain its remaining healthcare practice. The transaction is subject to the satisfaction of customary closing conditions, including the receipt of certain third-party consents and regulatory approvals. The transaction is not subject to any financing condition or shareholder approval. The transaction is expected to close prior to December 2020. DXC Technology will use the after-tax proceeds from the transaction to pay down debt.
Recent Acquisitions:
- Campus Management Acquisition, 2020
- athenahealth, 2019
- Cambium Learning Group, 2018
- VVC, 2018
- US Public Sector Business of PWC, 2018
- Capital Services division of CB&I, 2017
- Peraton, 2017
- Verisk Health, 2016
Infosys Limited (NSEI:INFY) completed the acquisition of Simplus
March 2020 – Infosys Limited (NSEI:INFY) entered into a definitive agreement to acquire Simplus from Salesforce Ventures, Inc., other institutional investors, founders and key employees for $200 million on February 10, 2020. The purchase price consists of $200 million including contingent consideration to be paid for the acquisition of shares subject to closing adjustments. In addition, there are employee incentives and retention payments amounting to up to $50 million on meeting certain performance conditions over three years. Simplus reported $67.1 million revenues for the year ending January 31, 2020. The acquisition is subject to customary closing conditions. Infosys Limited (NSEI:INFY) completed the acquisition of Simplus from Salesforce Ventures, Inc., other institutional investors, founders and key employees on March 13, 2020.
Simplus provides software as a service products and support services that streamline and simplify global enterprise work management processes. It offers data synchronization, integration, extension, and professional support services for various SaaS solutions. The company also provides an integration platform that syncs data, workflows, and processes across various platforms, as well as integrates various applications together that automatically sync and communicate with one another in real time.
Recent Acquisitions:
- Fluido, 2018
- Wongdoody,2018
- CMA Systems, 2018
- Brilliant Basics, 2017
- Skytree, 2017
salesforce.com, inc. (NYSE:CRM) signed a definitive agreement to acquire an unknown remaining stake in Vlocity, Inc. for $1.3 billion
February 2020 – salesforce.com, inc. (NYSE:CRM) signed a definitive agreement to acquire an unknown remaining stake in Vlocity, Inc. for $1.3 billion on February 25, 2020. The consideration, which is being paid, is the net of the value of shares currently owned by Salesforce and also is subject to customary purchase price adjustments. The purchase price will be paid in cash and the assumption of outstanding unvested equity awards held by Vlocity employees. Upon the close of the transaction, Vlocity will become part of salesforce.
Vlocity, Inc. develops industry specific cloud and mobile software. It provides Omniscript that drag-n-drop visual designers, integrates the data, configures the script elements, and compliant the styling. The company also offers omni-channel sales; customer order management; service solutions for communications, media, and technology sectors; people-centric benefits case management and customer relationship management applications for government agencies; customer insurance applications; and healthcare customer relationship management applications. Vlocity, Inc. was founded in 2014 and is based in San Francisco, California.
Recent Acquisitions:
- C Level Club, 2020
- Evergage, 2020
- ClickSoftware Technologies, 2019
- Tableau Software. 2019
- Bonobot Technologies, 2019
- MapAnything, 2019
- Griddable, 2019
- Rebel, 2018
- Datorama, 2018
- Mulesoft, 2018
- CloudCraze Software, 2018
- Sequence, 2017
- Twin Prime, 2016
- Krux Digital, 2016
- Gravity Tank, 2016
- HeyWire, 2016
- BeyondCore, 2016
- Quip, 2016
- Coolan, 2016
- Demandware, 2016
- YOUR SL, 2016
- Implisit Insights, 2016
- MetaMind, 2016
- TappingStone, 2016
- SteelBrick Holdings, 2016
Sources: CapitalIQ, Company Websites
