Teleperformance SE entered into a definitive agreement to acquire West Health Advocate Solutions, Inc. from Intrado Corporation for enterprise value of $690 million.
October 26, 2020
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Teleperformance SE (ENXTPA:TEP) entered into a definitive agreement to acquire West Health Advocate Solutions, Inc. from Intrado Corporation for enterprise value of $690 million on October 27, 2020. The acquisition will be fully financed through debt. Health Advocate reported revenue of $140 million and adjusted EBITDA of $50 million, representing a margin of 36%. Post completion of the transaction, West Health will be integrated in Teleperformance's US language interpretation and document translation services firm Languageline Solutions. The transaction is subject to regulatory approvals, antitrust regulations and other customary closing conditions. As of November 20, 2020 FTC has granted early termination of antitrust approval waiting period for the transaction. The transaction is expected to close in the first quarter of 2021. As of April 12, 2021, the transaction is expected to close during the second quarter of 2021. The deal will create immediate value for Teleperformance shareholders as it is expected to be accretive to earnings per share by around 7%, excluding amortization of intangibles on a pro forma basis for 2020. Teri O’Brien, Katherine Bell, Todd Schneider, Dan Stellenberg, Ron Ben-Yehuda and Joseph Opich of Paul Hastings LLP and Linklaters LLP acted as legal advisors to Teleperformance in connection with the acquisition and the financing, respectively. David Kamo and Jim Sinclair of Goldman Sachs and Triple Tree acted as financial advisors and Andrew J. Nussbaum and Karessa L. Cain of Wachtell, Lipton, Rosen & Katz served as legal advisor for Intrado Corporation. Olivier Boumendil and Stéphane Kuster of KPMG Transaction Services SA acted as due diligence provider for Teleperformance SE.
Teleperformance SE is no. 1 worldwide in outsourcing and corporate consulting services for customer relation management. Net sales break down by activity as follows:
- customer experience management services (83.7%): customer information, technical assistance, customer acquisition, back-office services. The group also offers integrated services for business process management and digital transformation and high added value consulting services. Net sales are distributed by geographic region between Europe/Middle East/Africa (36.3%), North America and Asia/Pacific (36.3%), Latin America (22.5%) and other (4.9%);
- specialized services (16.3%): online interpreting, visa application management and debt collection.
At the end of 2023, the group had over 490,000 employees in 99 countries and offers its services in over 300 languages across over 170 markets.
Net sales by customer sector break down into healthcare (56%), government services (13%), insurance (10%), financial services (7%) and other (14%).
Teleperformance SE entered into a definitive agreement to acquire West Health Advocate Solutions, Inc. from Intrado Corporation for enterprise value of $690 million.