While the pandemic has impacted the global M&A market, deals are still getting done, including in the BPO / CX software space (we have outlined a select few below since our last newsletter). While the impact from COVID-19 is going to challenge us to operate in unique and unprecedented ways, we are still seeing interest from buyers who are looking to get deals done and are being creative to bridge the value gap – what buyers are willing to pay and what sellers are willing to accept for their companies – via earnouts, put/call structures and equity rollover.
As in the financial crisis in 2008, creativity and tenacity are going to be the key factors in getting transactions completed and closed. In spite of the headlines, there is still strong buyer interest for companies that have faired well through the pandemic as well as, companies that have a strong business model but may need some short-term liquidity/support. Working with an experienced M&A advisor can be the difference in closing deals.
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
Medallia, Inc. (NYSE:MDLA) completed the acquisition of Voci Technologies Incorporated
May 2020 – Medallia, Inc. (NYSE:MDLA) entered into a definitive agreement to acquire Voci Technologies Incorporated for approximately $59 million on April 22, 2020. Voci Technologies develops real-time and near real-time solutions that convert speech to text at enterprise scale. The acquisition was completed on May 6, 2020.
Recent Acquisitions
- LivingLens, 2020
- Crowdicity, 2019
- Zingle, 2019
- Promoter.io, 2019
- Cooladata, 2019
- Strikedeck, 2019
- Kampyle, 2016
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Medallia Joins Forces with Ipsos to Launch New Healthcare Crowdsourcing Community
May 2020 – Medallia, Inc. announced it will collaborate with Ipsos to launch The Healthcare Ideas Community, bringing healthcare organizations together to uncover new ways to improve patient care and the healthcare employee journey. For healthcare providers who are responsible for patient and employee experiences, the new community will promote cross-functional collaboration from forward-thinking industry leaders looking to solve for many of today’s healthcare-related challenges. Built on the Medallia Crowdicity solution, and in collaboration with Ipsos, the first community topics will focus on how COVID-19 has impacted healthcare organization’s policies, what ideas and best practices they have to share around telehealth and how they can best care for the caregiving during the health crisis.
Ipsos Recent Acquisitions:
- Askia SAS, 2020
- Data Liberation Ltd, 2019
- Questback AS, 2019
- Synthesio, 2018
- LT Participations SA, 2016
ServiceNow, Inc. (NYSE:NOW) signed an agreement to acquire the 4Facility assets of App4Mation
May 2020 – ServiceNow, Inc. (NYSE:NOW) signed an agreement to acquire the 4Facility assets of App4Mation on May 5, 2020. Completion is expected by the end of Q2 2020. App4Mation comprises business applications for industrial and office settings.
Recent Acquisitions:
- PassageAI, 2020
- Loom Systems, 2020
- Fairchild Consulting Services, 2019
- MonetDB Solutions, 2019
- Cloud Elements, 2019
- Blazent, 2018
- Workato, 2018
- FriendlyData, 2018
- Parlo, 2018
- Vendorhawk, 2018
- SkyGiraffe, 2017
- Telepathy, 2017
- Qlue, 2017
- DxContinuum, 2017
- BrightPoint Security, 2016
- ITapp, 2016
Cognizant Technology Solutions Corporation (NasdaqGS:CTSH) entered into an agreement to acquire Collaborative Solutions, LLC
May 2020 – Cognizant Technology Solutions Corporation (NasdaqGS:CTSH) entered into an agreement to acquire Collaborative Solutions, a global consultancy specializing in Workday enterprise cloud applications for finance and human resources. Collaborative Solutions will mark Cognizant’s fourth cloud-related acquisition in 2020.
Recent Acquisitions:
- Lev, 2020
- 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
Farallon Capital Management, L.L.C., GIC Pte. Ltd. and HPS Investment Partners, LLC signed a share transfer agreement to acquire 62% stake in Atento S.A. (NYSE:ATTO) from Atalaya Luxco Pikco S.C.A.
May 2020 – Farallon Capital Management, L.L.C., GIC Pte. Ltd. and HPS Investment Partners, LLC signed a share transfer agreement to acquire 62% stake in Atento S.A. (NYSE:ATTO) from Atalaya Luxco Pikco S.C.A. on May 6, 2020. Post completion, HPS will hold approximately 25%, GIC 22% and Farallon 15% stake in Atento. The transaction is subject to regulatory conditions, including antitrust approvals in Brazil and Mexico. Atento provides customer relationship management, and business process outsourcing services and solutions in Brazil, the Americas, Europe, the Middle East, and Africa. Atento was founded in 1999 and has 154,000 employees spread out across 93 contact centers in 13 countries.
Atento Recent Acquisitions:
- Keepcon, 2017
Experian plc (LSE:EXPN) agreed to acquire 60% stake in Risk Management division of Arvato Financial Solutions for approximately €190 million.
May 2020 – Experian plc (LSE:EXPN) agreed to acquire 60% stake in Risk Management division of Arvato Financial Solutions for approximately €190 million on April 8, 2020. Under the terms of transaction, Experian will issue 7.2 million shares. Acquisition is subject to customary closing conditions, including regulatory approval. The transaction is expected to complete during the year ending March 31, 2021.
Experian Recent Acquisitions:
- Look Who’s Charging Pty Ltd, 2019
- Compuscan Information Technologies, 2019
- Clarity Services, 2018
- London & Country Mortgages Ltd, 2017
- Runpath Group Ltd, 2017
Sitel Group, Uniphore Partner to Transform the Customer Experience Industry Through AI and Automation
May 2020 – Uniphore and Sitel Group announced they have partnered to combine Sitel Group’s breadth of industry experience and customer-centric approach with Uniphore’s world-class Automation and Artificial Intelligence (AI) CSA platform to transform the customer experience and enable tailored and powerful solutions for Sitel Group’s customers around the globe. With a shared goal of delivering exceptional CX, the two companies bring together deep skills in business and technology strategy, technology development and deployment, and organizational change management to support clients through successful CX transformations.
Sources: CapitalIQ, Company Websites
