French outsourcing giant Teleperformance is very close to acquiring Blackstone-owned business process outsourcing firm Intelenet for up to $1 billion, according to an Economic Times report quoting multiple sources.
The deal is expected to be announced as early as Thursday evening, it said. This would be the second big deal for Teleperformance in India since it acquired Essar Group’s BPO business in 2014.
Per the report, Teleperformance was competing with private equity group Baring Asia, Carlyle, Goldman Sachs Principal Investment Area, KKR-backed Webhelp and Conduent, among other potential suitors, to buy Intelenet via a formal bidding process.
Intelenet was formed in October 2000 as a 50:50 joint venture between Tata Consultancy Services and Housing Development Finance Corporation Ltd. (HDFC) and started operations in November 2001. In July 2004, TCS divested its 50 per cent stake, which was purchased by Barclays Bank Plc, one of Intelenet’s biggest clients.
In 2007, Intelenet’s management team initiated a management buyout backed by Blackstone Group, a global private equity player. In 2011, it was acquired by UK’s Serco Group PLC, which saw Blackstone’s exit. In 2015, Blackstone repurchased Intelenet from the Serco Group for about £250 million, following which the business was rebranded as Intelenet Global Services.
Intelenet offers contact centre, transaction processing, finance & accounting, HRO and IT to companies in the UK, US, Australia, and India. It currently employs about 55,000 people across 70 centres in North & Central America, UK, Europe, Asia Pacific and the Middle East.
Founded in 1978, Teleperformance positions itself as a leader in outsourced omnichannel customer experience management, providing customer acquisition, customer care, technical support, debt collection, social media, and other services to companies and administrations around the world. The company reported consolidated revenue of $4.7 billion in 2017.