Valuation multiples for companies remain at an all-time high fueled in large part by investors being flush with cash and a high level of confidence in the current business environment. According to Pitch Book, Global M&A activity continued its record-setting pace, with just over 27,000 deals completed for a combined $3.4 trillion through the first three quarters of 2021.
In Europe, the three largest quarters ever for M&A deal volume occurred in 2021, and the YTD figure now stands at 12,182 closed deals—only marginally behind the previous record of 12,527 deals set in 2015.
In the US, the perceived impact from President Biden’s new tax policy on capital gains rates seems to have diminished significantly and is no longer dominating the decision-making process for business owners considering selling their business in the near term.
Here are some of the M&A transactions that caught my attention over the last few months in the BPO/CX space.
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
October 29, 2021 – Thoma Bravo completed the acquisition of Medallia from Sequoia Capital Operations LLC and others in a take-private transaction that values Medallia at $6.4 billion. Medallia provides an enterprise SaaS platform utilizing deep learning-based artificial intelligence technology to analyze structured and unstructured data from signal fields in human, digital, and Internet of Things interactions.
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September 2, 2021 – Verint Systems agreed to acquire Conversocial for $50 million. Conversocial, Inc. provides social customer service solutions, such as consolidated agent desktop, knowledge management, and agent collaboration.
August 27, 2021 – Sitel Worldwide completed the acquisition of Sykes Enterprises for $2.2 billion. Sykes Enterprises provides customer experience management, multichannel demand generation, and digital transformation services.
August 11, 2021 – NICE acquired Moxie Software. Moxie Software, develops software solutions such as intelligent decisioning, performance analytics, digital engagement, web self-service, knowledgebase, email, live chat, and mobile software solutions.
July 27, 2021 – Uniphore Technologies entered into an agreement to acquire Jacada. Jacada develops, markets, and supports customer experience management and robotic process optimization solutions that automate customer service processes.
July 21, 2021 – Salesforce.com completed the acquisition of Slack Technologies. Slack Technologies is a SaaS-based business technology software platform that brings together people, applications, and data.
July 18, 2021 – Zoom Video Communications entered into a definitive agreement to acquire Five9 for $13.9 billion. Five9 provides cloud software for contact centers in the United States and internationally.
July 14, 2021 – Lumine Group acquired the mobile network solutions business of Concentrix Corporation. The mobile network solutions business of Concentrix Corporation will now be marketed under the newly created brand “NetEngage” and will operate as a fully autonomous Lumine business.
July 7, 2021 – ABRY Partners and Hoplon Capital entered into a definitive agreement to acquire Concentrix Insurance Solutions from Concentrix Corporation. This creates a new company which will operate as a standalone business bringing innovation to the insurance marketplace.
July 7, 2021 – NICE completed the acquisition of ContactEngine. ContactEngine develops and provides a SaaS-based conversational AI platform that automates the conversations between corporations and their customers.
July 6, 2021 – Taiying International acquired the remaining 28.9% stake of China Customer Relations Centers for $34.5 million. China Customer Relations Centers provides business process outsourcing services for companies in China.
Sources: Pitch Book, CapitalIQ, Company Websites
